THE TRUSTEES OF INDIANA UNIVERSITY Indiana University Commercial Paper Notes Not to Exceed $100,000,000

Size: px
Start display at page:

Download "THE TRUSTEES OF INDIANA UNIVERSITY Indiana University Commercial Paper Notes Not to Exceed $100,000,000"

Transcription

1 NEW ISSUE RATINGS BOOK-ENTRY ONLY Moody s: P-1 Standard & Poor s: A-1+ (See RATINGS ) In the opinion of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, under existing laws, regulations, judicial decisions and rulings, interest on the Tax-Exempt Notes (as hereinafter defined), when issued, will be excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended, and will not be a specific preference item for purposes of the federal alternative minimum tax, although Bond Counsel observes that it will be included in adjusted current earnings in calculating corporate alternative minimum taxable income for taxable years that began prior to January 1, The opinion of Bond Counsel will be based on certain certifications, covenants and representations of the Issuer (as hereinafter defined) and will be conditioned on continuing compliance therewith. Interest on the Taxable Notes (as hereinafter defined) will not be excludable from gross income for federal income tax purposes. In the opinion of Bond Counsel, under existing laws, interest on the Notes (as hereinafter defined), when issued, will be exempt from income taxation in the State of Indiana. See TAX MATTERS and Appendix C. THE TRUSTEES OF INDIANA UNIVERSITY Indiana University Commercial Paper Notes Not to Exceed $100,000,000 The Trustees of Indiana University (the Issuer ) may from time to time issue its Indiana University Commercial Paper Notes (the Notes ), in one or more series (each, a Series ). Upon issuance, the Notes of each Series will be designated as either taxable Notes (the Taxable Notes ) or tax-exempt Notes (the Tax-Exempt Notes ). The Notes will be issued in fully registered form in denominations of $100,000 and any integral multiple of $1,000 in excess thereof. The Notes will be held in a book-entry only system, registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York. See NOTES and BOOK-ENTRY ONLY SYSTEM. Each Note will mature not later than the earliest of (1) 270 days from its date of issuance, (2) if such Note is payable from any Liquidity Facility (as hereinafter defined), two business days prior to the stated expiration date of such Liquidity Facility or (3) May 1, 2033 (as such date may be either extended or advanced by the Issuer). Each Note will be dated and bear interest from its date of issuance at a fixed rate specified by the Issuer at the time of issuance, calculated on the basis of the actual number of days elapsed and a 365/366 day year. The Notes will be sold at par. The principal of and interest on each Note will be payable at maturity of such Note. See NOTES. The principal of and interest on the Notes of each Series will be payable solely from the following (the Available Funds for Notes ): (1) any and all moneys of the Issuer which are legally available for the payment of any obligations under the Notes or any Liquidity Facility upon which the Issuing and Paying Agent (as hereinafter defined) may draw to make payment of principal of and interest on the Notes of such Series, including (but not limited to) unrestricted operating fund balances, auxiliary fund balances and certain other fund balances of the Issuer, in each case without priority among any such fund balances and only to the extent not pledged, restricted or specifically authorized for other purposes, now or in the future, or otherwise restricted by law, but excluding mandatory student fees or state appropriations except to the extent such funds are expressly authorized for this purpose by the Indiana General Assembly; (2) any and all proceeds from the Notes or any refunding bonds; and (3) any and all proceeds from any drawings on any applicable letter of credit, standby bond purchase agreement, line of credit, loan, guaranty, revolving credit agreement or other credit or liquidity facility (any such letter of credit, standby bond purchase agreement, line of credit, loan, guaranty, revolving credit agreement or other credit or liquidity facility, a Liquidity Facility ) upon which the Issuing and Paying Agent may draw to make payment of principal of and interest on the Notes of such Series. On the date of issuance of the initial Series of the Notes, there will be no Liquidity Facility. See SOURCES OF PAYMENT OF NOTES. The Notes will be issued pursuant to an Issuing and Paying Agency Agreement between the Issuer and U.S. Bank National Association, as issuing and paying agent (the Issuing and Paying Agent ), dated as of May 1, 2018, and an Addendum thereto from the Issuer, dated as of May 1, 2018, to provide for the temporary financing or refinancing of any purposes for which the Issuer may issue or incur obligations under the Act (as hereinafter defined), including capitalized interest on and costs of issuance of the Notes. See PROJECTS. The Notes of each Series will be special, limited and unsecured obligations of the Issuer, payable solely from the Available Funds for Notes of such Series. The Notes of each Series will not be or become a liability against the State of Indiana or the Issuer, except to the extent of the Available Funds for Notes of such Series, or a lien or charge against any property or funds of the State of Indiana or the Issuer. See SOURCES OF PAYMENT OF NOTES. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read this entire Offering Memorandum to obtain information essential to the making of an informed investment decision. The Notes are offered when, as and if issued, subject to prior sale, to withdrawal or modification of the offer without notice, to delivery of an approving opinion of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, and to certain other conditions. Certain legal matters will be passed upon for the Issuer by Jacqueline A. Simmons, Esquire, Vice President and General Counsel to the Issuer. Certain legal matters will be passed upon for the Dealer by Barnes & Thornburg LLP, Indianapolis, Indiana, special counsel to the Dealer. Wells Fargo Securities As Dealer Offering Memorandum dated May 15, 2018

2 No dealer, broker, salesman or other person has been authorized by the Issuer or the Dealer to give any information or to make any representations other than those contained in this Offering Memorandum and, if given or made, such information or representations must not be relied upon as having been authorized by the Issuer or the Dealer. This Offering Memorandum does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes, and there shall not be any sale of any of the Notes, by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The Dealer has provided the following sentence for inclusion in this Offering Memorandum. The Dealer has reviewed the information in this Offering Memorandum in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Dealer does not guarantee the accuracy or completeness of such information. This Offering Memorandum should be considered in its entirety and no one factor considered more or less important than any other by reason of its position in this Offering Memorandum. The information and expressions of opinion in this Offering Memorandum are subject to change without notice, and neither the delivery of this Offering Memorandum nor any sale hereunder shall under any circumstances create an implication that there has been no change as to the affairs of the Issuer or any other party referred to herein since the date of this Offering Memorandum or since any earlier date as of which information is stated to be given. IN CONNECTION WITH THIS OFFERING, THE DEALER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE NOTES AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. UPON ISSUANCE, THE NOTES WILL NOT BE REGISTERED BY THE ISSUER UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW OR REGULATION, AND WILL NOT BE LISTED ON ANY STOCK OR OTHER SECURITIES EXCHANGE. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERIT AND RISK INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. U.S. Bank National Association is acting only as an Issuing and Paying Agent in connection with the offering of securities described herein, and has not endorsed, recommended or guaranteed the purchase, value or repayment of such securities. i

3 SUMMARY The following summary is qualified in its entirety by reference to the more complete and detailed information contained in this Offering Memorandum, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made of this entire Offering Memorandum. The offering of the Notes to potential investors is made only by means of this entire Offering Memorandum. Reference is made to Appendix A for the definitions of certain capitalized terms used herein. NOTES Indiana University Commercial Paper Notes (the Notes ), in one or more series (each, a Series ). Upon issuance, the Notes of each Series will be designated as either taxable Notes (the Taxable Notes ) or tax-exempt Notes (the Tax-Exempt Notes ). ISSUER The Trustees of Indiana University (the Issuer ). See INTRODUCTION Issuer, SOURCES OF PAYMENT OF NOTES Indiana University, ADDITIONAL INFORMATION and Appendix B. AUTHORITY PURPOSE SOURCES OF PAYMENT The Notes are being issued pursuant to Indiana Code and, where applicable, Indiana Code through 10, Indiana Code and Indiana Code , 3 and 5, and any successor statutes (the Act ), an Issuing and Paying Agency Agreement between the Issuer and U.S. Bank National Association, as issuing and paying agent (the Issuing and Paying Agent ), dated as of May 1, 2018, and an Addendum thereto from the Issuer, dated as of May 1, 2018 (such Issuing and Paying Agency Agreement and Addendum, the Issuing and Paying Agency Agreement ), and resolutions adopted by the Board of Trustees of the Issuer. The Notes may be issued from time to time to provide for the temporary financing or refinancing of any purposes for which the Issuer may issue or incur obligations under the Act (the Projects ), including capitalized interest on and costs of issuance of the Notes. See PROJECTS. The Notes of each Series will be special, limited and unsecured obligations of the Issuer, payable solely from the following (the Available Funds for Notes ): (1) any and all moneys of the Issuer which are legally available for the payment of any obligations under the Notes or any Liquidity Facility (as hereinafter defined) upon which the Issuing and Paying Agent may draw to make payment of principal of and interest on the Notes of such Series, including (but not limited to) unrestricted operating fund balances, auxiliary fund balances and certain other fund balances of the Issuer, in each case without priority among any such fund balances and only to the extent not pledged, restricted or specifically authorized for other purposes, now or in the future, or otherwise restricted by law, but excluding mandatory student fees or state appropriations except to the extent such funds are expressly authorized for this purpose by the Indiana General Assembly; (2) any and all proceeds from the Notes or any refunding bonds; and (3) any and all proceeds from any drawings on any applicable letter of credit, standby bond purchase agreement, line of credit, loan, ii

4 guaranty, revolving credit agreement or other credit or liquidity facility (any such letter of credit, standby bond purchase agreement, line of credit, loan, guaranty, revolving credit agreement or other credit or liquidity facility, a Liquidity Facility ) upon which the Issuing and Paying Agent may draw to make payment of principal of and interest on the Notes of such Series. On the date of issuance of the Notes of the initial Series, there will be no Liquidity Facility. The Notes of each Series will not be or become a liability against the State of Indiana or the Issuer, except to the extent of the Available Funds for Notes of such Series, or a lien or charge against any property or funds of the State of Indiana or the Issuer. See SOURCES OF PAYMENT OF NOTES. ISSUING AND PAYING AGENT DEALER BOOK ENTRY INTEREST PRINCIPAL RATINGS TAX MATTERS U.S. Bank National Association has been appointed by the Issuer to serve as the Issuing and Paying Agent for the Notes. Wells Fargo Bank, National Association (the Dealer ), has been appointed by the Issuer to serve as the Dealer for the Notes. See DEALER. The Notes will be issued in fully registered form in denominations of $100,000 and any integral multiple of $1,000 in excess thereof. The Notes will be held in a book-entry only system, registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York. See BOOK-ENTRY ONLY SYSTEM. Each Note will be dated and bear interest from its date of issuance. The rate of interest on each Note will be specified by the Issuer at the time of issuance thereof, calculated on the basis of the actual number of days elapsed and a 365/366 day year. Interest on each Note will be payable at maturity of such Note. See NOTES. The Notes will be sold at par. The principal of each Note will be payable at maturity of such Note. Each Note will mature not later than the earliest of (1) 270 days from its date of issuance, (2) if such Note is payable from any Liquidity Facility, two Business Days prior to the stated expiration date of such Liquidity Facility or (3) May 1, 2033 (as such date may be either extended or advanced by the Issuer). See NOTES. The Notes have been rated P-1 and A-1+ by Moody s and S&P, respectively. See RATINGS. In the opinion of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, under existing laws, regulations, judicial decisions and rulings, interest on the Tax-Exempt Notes, when issued, will be excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended, and will not be a specific preference item for purposes of the federal alternative minimum tax, although Bond Counsel observes that it will be included in adjusted current earnings in calculating corporate alternative minimum taxable income for taxable years that began prior to January 1, The opinion of Bond Counsel will be based on certain certifications, covenants and representations of the Issuer and iii

5 will be conditioned on continuing compliance therewith. Interest on the Taxable Notes will not be excludable from gross income for federal income tax purposes. In the opinion of Bond Counsel, under existing laws, interest on the Notes, when issued, will be exempt from income taxation in the State of Indiana. See TAX MATTERS and Appendix C. CONTINUING DISCLOSURE ADDITIONAL INFORMATION The offering of the Notes is exempt from Rule 15c2-12 (the Rule ) under the Securities Exchange Act of 1934 and, accordingly, the Issuer has not entered into an agreement to provide continuing disclosure for the benefit of the holders of the Notes. However, the Issuer currently provides continuing disclosure filings, including annual financial statements of the Issuer, with the Municipal Securities Rulemaking Board (the MSRB ), pursuant to continuing disclosure agreements related to previous debt offerings. These filings by the Issuer are currently available from the MSRB. The Issuer s current continuing disclosure obligations may be modified or terminated in the future in accordance with the prior continuing disclosure agreements and the Rule, without any notice to or consent from the Issuing and Paying Agent or the holders of any Notes. Copies of the Master Note (as hereinafter defined), the Issuing and Paying Agency Agreement and the Dealer Agreement (as hereinafter defined) may be obtained upon request: (1) to the Issuer at Indiana University, Capital Finance, Poplars 214, 400 East Seventh Street, Bloomington, Indiana ; or (2) to the Dealer at Wells Fargo Bank, National Association, 550 South Tryon Street, 4 th Floor, Charlotte, North Carolina 28202, Attention: Municipal Products Group, Short-Term Trading. iv

6 TABLE OF CONTENTS INTRODUCTION... 1 Issuer... 1 Sources of Payment of Notes... 1 Purpose of Notes... 2 Terms of Notes... 2 Tax Matters... 2 Professionals Involved in Offering... 3 Other Information... 3 NOTES... 3 General... 3 Authorized Denominations... 3 Principal... 4 Interest... 4 No Redemption... 4 Payments of Principal and Interest... 4 Registration... 4 BOOK-ENTRY ONLY SYSTEM... 4 DTC... 4 Issuing and Paying Agency Agreement... 6 SOURCES OF PAYMENT OF NOTES... 6 Available Funds for Notes... 6 Indiana University... 7 Liquidity Facility... 8 PROJECTS... 9 LITIGATION... 9 ENFORCEABILITY OF RIGHTS AND REMEDIES... 9 CERTAIN LEGAL MATTERS... 9 TAX MATTERS Taxable Notes Tax-Exempt Notes RATINGS DEALER CERTAIN RELATIONSHIPS CONTINUING DISCLOSURE FINANCIAL REPORT ADDITIONAL INFORMATION MISCELLANEOUS Page APPENDICES: Appendix A Definitions... A-1 Appendix B Financial Report of the University for the Fiscal Year Ended June 30, B-1 Appendix C Form of Opinion of Bond Counsel... C-1 v

7 OFFERING MEMORANDUM The Trustees of Indiana University Indiana University Commercial Paper Notes Not to Exceed $100,000,000 INTRODUCTION This Offering Memorandum, including its cover page and appendices, provides information in connection with the issuance and sale from time to time of the Indiana University Commercial Paper Notes (the Notes ), in one or more series (each, a Series ). The Notes of each Series will be designated as either taxable Notes (the Taxable Notes ) or tax-exempt Notes (the Tax-Exempt Notes ). This introduction is not a summary of this Offering Memorandum. It is only a summary description of and guide to, and is qualified by, more complete and detailed information contained in this entire Offering Memorandum, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made of this entire Offering Memorandum. The offering of Notes to potential investors from time to time is made only by means of this entire Offering Memorandum and any amendments and supplements hereto. Issuer Indiana University (the University ) is one of the largest universities in the nation. It was established by the Indiana General Assembly (the General Assembly ) in 1820 as Indiana Seminary and was located in Bloomington. It was designated as Indiana College by the General Assembly in 1828 and became Indiana University in The Trustees of Indiana University (the Issuer ) is a body politic created by the General Assembly, with powers to organize the University and to do all acts necessary and expedient to put and keep the University in operation. The Issuer s governing body is a nine-member Board of Trustees, also created by Indiana law. The Notes are being issued pursuant to Indiana Code and, where applicable, Indiana Code through 10, Indiana Code and Indiana Code , 3 and 5, and any successor statutes (the Act ), an Issuing and Paying Agency Agreement between the Issuer and U.S. Bank National Association, as issuing and paying agent (the Issuing and Paying Agent ), dated as of May 1, 2018, and an Addendum thereto from the Issuer, dated as of May 1, 2018 (such Issuing and Paying Agency Agreement and Addendum, the Issuing and Paying Agency Agreement ), and resolutions adopted by the Board of Trustees of the Issuer on April 14, 2017, August 11, 2017, February 2, 2018, and April 6, For additional information about the Issuer and the University, see SOURCES OF PAYMENT OF NOTES Indiana University, ADDITIONAL INFORMATION and Appendix B. Sources of Payment of Notes The Notes of each Series will be special, limited and unsecured obligations of the Issuer, payable solely from the following (the Available Funds for Notes ): (1) any and all moneys of the Issuer which are legally available for the payment of any obligations under the Notes or any Liquidity Facility (as hereinafter defined) upon which the Issuing and Paying Agent may draw to make payment of principal of and interest on the Notes of such Series, including (but not limited to) unrestricted operating fund balances, auxiliary fund balances and certain other fund balances of the Issuer, in each case without any priority among any such fund balances and only to the extent not pledged, restricted or specifically authorized for other purposes, now or in the future, or otherwise restricted by law, but excluding mandatory student fees or state appropriations except to the extent such funds are expressly authorized for this purpose by the Indiana General Assembly;

8 (2) any and all proceeds from the Notes or any permanent financing issued to refinance such Notes, or any projects financed on an interim basis by such Notes, to be issued under the provisions of the Act ( Refunding Bonds ); and (3) any and all proceeds from any drawings on any applicable letter of credit, standby bond purchase agreement, line of credit, loan, guaranty, revolving credit agreement or other credit or liquidity facility (any such letter of credit, standby bond purchase agreement, line of credit, loan, guaranty, revolving credit agreement or other credit or liquidity facility, a Liquidity Facility ) upon which the Issuing and Paying Agent may draw to make payment of principal of and interest on the Notes of such Series. For additional information about the Available Funds for Notes, see SOURCES OF PAYMENT OF NOTES Available Funds for Notes and ADDITIONAL INFORMATION. On the date of issuance of the Notes of the initial Series, there will be no Liquidity Facility. However, the Issuer may in the future, upon the satisfaction of certain conditions precedent, provide a Liquidity Facility for the Notes of any Series. See SOURCES OF PAYMENT OF NOTES Liquidity Facility. The Notes of each Series will not be or become a liability against the State of Indiana (the State ) or the Issuer, except to the extent of the Available Funds for Notes of such Series, or a lien or charge against any property or funds of the State or the Issuer. The Notes are not secured by any mortgage on or security interest in any real or personal property. Purpose of Notes The proceeds from the sale of the Notes will be used to provide for the temporary financing or refinancing of any purposes for which the Issuer may issue or incur obligations under the Act (the Projects ), including capitalized interest on and costs of issuance of the Notes. See PROJECTS. Terms of Notes Each Note will be dated and bear interest from its date of issuance. The Notes will be sold at par. The principal of and interest on each Note will be payable at maturity of such Note. Each Note will mature not later than the earliest of (1) 270 days from its date of issuance, (2) if such Note is payable from any Liquidity Facility, two Business Days prior to the stated expiration date of such Liquidity Facility or (3) May 1, 2033, as such date may be either extended or advanced by the Issuer in a supplement to the Issuing and Paying Agency Agreement (the Final Maturity Date ). See NOTES. The Notes will be issued in fully registered form in denominations of $100,000 and any integral multiple of $1,000 in excess thereof. The Notes are not subject to redemption prior to their respective maturities or to acceleration of maturities. The Notes will be held in a book-entry only system, registered in the name of Cede & Co., as nominee of The Depository Trust Company ( DTC ), New York, New York. See BOOK-ENTRY ONLY SYSTEM. Tax Matters In the opinion of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, under existing laws, regulations, judicial decisions and rulings, interest on the Tax-Exempt Notes, when issued, will be excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended, and will not be a specific preference item for purposes of the federal alternative minimum tax, although Bond Counsel observes that it will be included in adjusted current earnings in calculating corporate alternative minimum taxable income for taxable years that began prior to January 1, The opinion of Bond Counsel will be based on certain certifications, covenants and representations of the Issuer and will be conditioned on continuing compliance therewith. Interest on the Taxable Notes will not be excludable from gross income for federal income tax purposes. In the opinion of Bond Counsel, under existing laws, interest on the Notes, when issued, will be exempt from income taxation in the State. See TAX MATTERS and Appendix C. 2

9 Professionals Involved in Offering U.S. Bank National Association will act as the Issuing and Paying Agent for the Notes under the Issuing and Paying Agency Agreement. Wells Fargo Bank, National Association, will act as the Dealer (the Dealer ) for the Notes under a Commercial Paper Dealer Agreement between the Dealer and the Issuer, dated as of May 1, 2018 (the Dealer Agreement ). On the date of delivery of the Master Note from the Issuer to Cede & Co., evidencing the Notes issued and outstanding while such Notes are in book-entry form (the Master Note ), Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, will deliver the opinion described under TAX MATTERS, the form of which is attached hereto as Appendix C. Other Information change. This Offering Memorandum speaks only as of its date, and the information contained herein is subject to The quotations from, and summaries and explanations of, the laws, regulations and documents contained herein do not purport to be complete, and reference is made to such laws, regulations and documents for full and complete statements of their provisions. Copies of such laws, regulations and documents (including the Master Note, the Issuing and Paying Agency Agreement and the Dealer Agreement) may be obtained upon request to the Issuer at Indiana University, Capital Finance, Poplars 214, 400 East Seventh Street, Bloomington, Indiana Copies of the Master Note, the Issuing and Paying Agency Agreement and the Dealer Agreement may also be obtained upon request to the Dealer at Wells Fargo Bank, National Association, 550 South Tryon Street, 4 th Floor, Charlotte, North Carolina 28202, Attention: Municipal Products Group, Short-Term Trading. The offering of the Notes is exempt from Rule 15c2-12 under the Securities Exchange Act of Neither the Issuer nor any other person has undertaken in any agreement or contract to provide to the Issuing and Paying Agent, the Dealer, any holder of any Notes, any information repository or depository, the Municipal Securities Rulemaking Board or any other person, on a periodic basis or otherwise, any financial information, financial statements, operating data or other information or any notice of any event with respect to the Notes. Any statements in this Offering Memorandum involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Offering Memorandum is not to be construed as a contract or agreement between the Issuer and any purchasers or holders of any Notes. Reference is made to Appendix A for the definition of certain capitalized terms used in this Offering Memorandum. General NOTES The Issuer may issue and sell Notes, in one or more Series, at such times, in such amounts, with such maturities, at such fixed rates of interest, and upon such other terms and conditions as are fixed by the Issuer at the time of issuance. Upon the issuance of each Note, the Issuer will specify, in instructions delivered to the Issuing and Paying Agent, (1) the Series designation, principal amount, date of issuance, maturity date, fixed rate of interest and purchase price of such Note, (2) whether such Note is payable from any Liquidity Facility and (3) whether such Note is a Taxable Note or Tax-Exempt Note. The Notes will be sold at par. The authority to issue Notes from time to time under the Issuing and Paying Agency Agreement will cease only at 3:00 p.m., New York time, on the Business Day immediately preceding the Final Maturity Date. Authorized Denominations The Notes will be issued in fully registered form in denominations of $100,000 and any integral multiple of $1,000 in excess thereof. 3

10 Principal The Notes will be issued from time to time in one or more Series, in an aggregate principal amount at any time Outstanding not to exceed $100,000,000. Each Note will mature not later than the earliest of (1) 270 days from its date of issuance, (2) if such Note is payable from any Liquidity Facility, two Business Days prior to the stated expiration date of such Liquidity Facility or (3) the Final Maturity Date. period. No Notes, in an aggregate principal amount exceeding $25,000,000, will mature in any five Business Day Interest Each Note will be dated and bear interest from its date of issuance. Each Note will bear a fixed rate of interest specified by the Issuer at the time of issuance of such Note, which rate will not exceed the least of (1) if such Note is payable from any Liquidity Facility, the maximum interest rate per annum specified in such Liquidity Facility for purposes of computing the interest portion of the amount available under such Liquidity Facility to pay such Note, (2) the maximum rate of interest per annum allowed by law to be charged with respect to obligations similar to the Notes or (3) 10% per annum. Interest on the Notes will be calculated on the basis of the actual number of days elapsed and a 365/366 day year. No Redemption The Notes are not subject to redemption prior to their respective maturities or to acceleration of maturities. Payments of Principal and Interest The principal of and interest on each Note will be payable at maturity of such Note in immediately available funds to the registered owner thereof as shown on the registration records kept by the Issuing and Paying Agent, through the facilities of DTC. If any Note is no longer in book-entry-only form, such Note will be paid upon presentation and surrender thereof at the corporate trust office of the Issuing and Paying Agent. As long as the Notes are held in book-entry form, registered in the name of Cede & Co., DTC s nominee, the Issuing and Paying Agent will pay the principal of and interest on each Note only to the account of Cede & Co. on the maturity date of such Note, by transfer of immediately available funds. Registration Records for the registration of the Notes will be kept by the Issuing and Paying Agent. The Notes will initially be issued in book-entry form. While the Notes are in book-entry form, an executed Master Note, in the maximum aggregate principal amount of the Notes of all Series, will be held by the Issuing and Paying Agent and will be registered in the name of Cede & Co., as nominee of DTC. The Issuer, the Issuing and Paying Agent and the Dealer may treat Cede & Co., as nominee of DTC, as the absolute owner of each Note for the purpose of receiving payment thereof and for all other purposes, and neither the Issuer, the Issuing and Paying Agent nor the Dealer will be affected by any notice or knowledge to the contrary. DTC BOOK-ENTRY ONLY SYSTEM The Depository Trust Company ( DTC ), New York, New York, will act as securities depository for the Notes. The Notes will be issued as fully-registered securities registered in the name of Cede & Co. (DTC s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fullyregistered Note certificate will be issued for the Notes, in the maximum aggregate principal amount of the Notes, and will be deposited with DTC. 4

11 DTC, the world s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a banking organization within the meaning of the New York Banking Law, a member of the Federal Reserve System, a clearing corporation within the meaning of the New York Uniform Commercial Code, and a clearing agency registered pursuant to the provisions of Section 17A of the Securities Exchange Act of DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-u.s. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC s participants ( Direct Participants ) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-u.s. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ( DTCC ). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-u.s. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ( Indirect Participants ). DTC has a Standard & Poor s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at Purchases of Notes under the DTC system must be made by or through Direct Participants, which will receive a credit for the Notes on DTC s records. The ownership interest of each actual purchaser of each Note ( Beneficial Owner ) is in turn to be recorded on the Direct and Indirect Participants records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Notes are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Notes, except in the event that use of the book-entry system for the Notes is discontinued. To facilitate subsequent transfers, all Notes deposited by Direct Participants with DTC are registered in the name of DTC s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Notes with DTC and their registration in the name of Cede & Co. or such other nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Notes; DTC s records reflect only the identity of the Direct Participants to whose accounts such Notes are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Notes may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Notes, such as defaults and proposed amendments to the Note documents. For example, Beneficial Owners of Notes may wish to ascertain that the nominee holding the Notes for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Notes unless authorized by a Direct Participant in accordance with DTC s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co. s consenting or voting rights to those Direct Participants to whose accounts the Notes are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal and interest payments on the Notes will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC s practice is to credit Direct Participants accounts, upon DTC s receipt of funds and corresponding detail information from the Issuer or the Issuing and Paying Agent on payable date in accordance with their respective holdings shown on DTC s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities 5

12 held for the accounts of customers in bearer form or registered in street name, and will be the responsibility of such Participant and not of DTC, the Issuing and Paying Agent or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Principal and interest payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Issuer or the Issuing and Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Notes at any time by giving reasonable notice to the Issuer or the Issuing and Paying Agent. Under such circumstances, in the event that a successor depository is not obtained, Note certificates are required to be printed and delivered. The Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Note certificates will be printed and delivered to DTC. The information in this section concerning DTC and DTC s book-entry system has been obtained from sources that the Issuer believes to be reliable, but neither the Issuer nor the Dealer takes any responsibility for the accuracy thereof. Issuing and Paying Agency Agreement The Issuing and Paying Agency Agreement provides that the Issuer and the Issuing and Paying Agent may treat DTC as, and deem DTC to be, the absolute owner of each Note for all purposes whatsoever, including (1) payment of the principal of and interest on such Note, (2) giving notices of purchase and other matters with respect to such Note and (3) registering transfers with respect to such Note. The Issuer and the Issuing and Paying Agent will have no responsibility or obligation to any Direct Participants, Indirect Participants or Beneficial Owners of any Notes. The Issuer and the Issuing and Paying Agent will have no responsibility or obligation with respect to (a) the accuracy of the records of DTC, Cede & Co. or any Direct Participant or Indirect Participant with respect to any beneficial ownership interest in any Notes, (b) the delivery to any Direct Participant, Indirect Participant, Beneficial Owner or other person, other than DTC, of any notice with respect to any Notes, (c) the payment to any Direct Participant, Indirect Participant, Beneficial Owner or other person, other than DTC, of any amount with respect to the principal of or interest on any Notes, or (d) any consent given or other action taken by DTC as owner of any Notes. Available Funds for Notes SOURCES OF PAYMENT OF NOTES The Notes of each Series will be special, limited and unsecured obligations of the Issuer, payable solely from the Available Funds for Notes of such Series, which consist of the following: (1) any and all moneys of the Issuer which are legally available for the payment of any obligations under the Notes or any Liquidity Facility upon which the Issuing and Paying Agent may draw to make payment of principal of and interest on the Notes of such Series, including (but not limited to) unrestricted operating fund balances, auxiliary fund balances and certain other fund balances of the Issuer, in each case without any priority among any such fund balances and only to the extent not pledged, restricted or specifically authorized for other purposes, now or in the future, or otherwise restricted by law, but excluding mandatory student fees or state appropriations except to the extent such funds are expressly authorized for this purpose by the Indiana General Assembly; (2) any and all proceeds from the Notes or any Refunding Bonds; and (3) any and all proceeds from any drawings on any applicable Liquidity Facility upon which the Issuing and Paying Agent may draw to make payment of principal of and interest on the Notes of such Series. 6

13 The Available Funds for Notes described in subparagraph (1) above (such Available Funds for Notes, the Available Funds ), as of the end of each of the past five fiscal years, are presented in the following table: Available Funds 1 (dollars in thousands) Fiscal Year Ended June Indiana University 2,3 $1,397,686 $1,505,185 $1,382,935 $1,416,985 $1,434,658 Indiana University Foundation 344, , , , ,848 Available Funds 1 $1,742,173 $1,857,453 $1,748,572 $1,766,204 $1,811,506 Sources: Audited IU Financial Report; Indiana University Foundation (unaudited) 1 Amounts included unrestricted net position of the University as of June 30 of each year. Amounts also include certain quasi-endowment funds held by Indiana University Foundation designated for general use by specific schools or departments, that could be used to replace other revenues budgeted for such schools or departments, allowing such budgeted revenues to be applied to debt service on outstanding obligations in the event other Available Funds are not sufficient to pay such debt service. 2 Audited IU Financial Report fiscal year 2015, Note 1 Organization and Summary of Significant Accounting Policies, New Accounting Pronouncements: Adoption of New Standard - The GASB issued GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Statement No. 68 requires governments providing defined benefit pensions to recognize their unfunded pension benefit obligation as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. Statement No. 71 is a clarification to GASB 68 requiring a government to recognize a beginning deferred outflow of resources for its pension contributions, if any, made subsequent to the measurement date of the beginning net pension liability. The statements also enhance accountability and transparency through revised note disclosures and required supplementary information ( RSI ) for material items. In accordance with the statement, the University has reported a $123,964,000 change in accounting principle adjustment to Unrestricted Net Position as of July 1, June 30, 2014, amounts have not been restated to reflect the impact of GASB 68 because the information is not available to calculate the impact on pension expense for the fiscal year ending June 30, Unrestricted Net Position is the largest component of Available Funds. See Audited IU Financial Report, Statement of Net Position. The Available Funds are also available for the payment of the Issuer s certificates of participation, lease purchase obligations, consolidated revenue bonds and any other commercial paper. No assurance can be provided as to the availability or adequacy of the Available Funds as of any particular date. The Issuer retains the right to use the Available Funds for the payment of other obligations of the Issuer and to use any or all the Available Funds for other lawful corporate purposes of the Issuer. In particular, the Available Funds may be used to pay costs of any facilities, financing expenses, amounts payable under any credit facility and amounts payable (such as termination payments, etc.) under any derivative agreement. For additional information about the Available Funds, see ADDITIONAL INFORMATION. On the date of issuance of the Notes of the initial Series, there will be no Liquidity Facility. However, the Issuer may in the future, upon the satisfaction of certain conditions precedent, provide a Liquidity Facility for the Notes of any Series. See Liquidity Facility. The Notes of each Series will not be or become a liability against the State or the Issuer, except to the extent of the Available Funds for Notes of such Series, or a lien or charge against any property or funds of the State or the Issuer. The Notes are not secured by any mortgage on or security interest in any real or personal property. Indiana University The University is one of the largest universities in the nation. It was established by the General Assembly in 1820 as Indiana Seminary and was located in Bloomington. It was designated as Indiana College by the General Assembly in 1828 and became Indiana University in The Issuer is a body politic created by the General Assembly, with powers to organize the University and to do all acts necessary and expedient to put and keep the University in operation. The Issuer s governing body is a nine-member Board of Trustees, also created by Indiana law. 7

14 The University has core campuses in Bloomington and Indianapolis and regional campuses serving other areas of Indiana, which are located in Gary, Kokomo, New Albany, Richmond and South Bend. The Bloomington campus is the oldest and largest campus of the University, and is the primary residential campus. The Indiana University Purdue University at Indianapolis campus is the home of the Indiana University School of Medicine, the School of Dentistry and the School of Nursing. Under the realignment which will take effect on July 1, 2018, the Indiana University Fort Wayne campus will be located on the current Indiana University Purdue University Fort Wayne campus and will share building space with Purdue University Fort Wayne. For additional information about the Issuer and the University, see ADDITIONAL INFORMATION and Appendix B. Liquidity Facility On the date of issuance of the Notes of the initial Series, there will be no Liquidity Facility. However, the Issuing and Paying Agency Agreement permits the Issuer to provide, on any date, a Liquidity Facility for the Notes of any one or more Series, in an amount sufficient to pay the principal of and interest on such Notes as such Notes become due, if, at least 30 calendar days prior to the issuance of each Note of such Series Outstanding on such date, notice of such provision of such Liquidity Facility has been given by the Issuing and Paying Agent to the registered owners of all such Notes. In connection with the provision by any person (a Liquidity Facility Provider ) of any Liquidity Facility for any Notes, the Issuer must deliver to the Issuing and Paying Agent: (1) an executed copy of such Liquidity Facility; (2) written evidence, from all nationally recognized rating agencies then rating such Notes, to the effect that the ratings assigned by such rating agencies to such Notes will not be reduced or withdrawn as a result of the surrender of any then-existing Liquidity Facility and the delivery of such Liquidity Facility; (3) a certificate from any then-existing Liquidity Facility Provider to the effect that no payment obligations of the Issuer under any then-existing Liquidity Facility for reimbursement of draws on such then-existing Liquidity Facility, including any interest thereon, or other amounts, are then due and payable to it pursuant to such then-existing Liquidity Facility; (4) an opinion of counsel to such Liquidity Facility Provider, addressed to the Issuer and the Issuing and Paying Agent, to the effect that such Liquidity Facility is a valid and enforceable obligation of such Liquidity Facility Provider; (5) an opinion of nationally recognized bond counsel, addressed to the Issuer and the Issuing and Paying Agent, to the effect that the delivery of such Liquidity Facility will not cause interest on any Tax-Exempt Notes to be includable in gross income for federal income tax purposes; and (6) if such Liquidity Facility Provider is a branch or agency of a bank organized other than pursuant to the laws of the United States or of any state, an opinion of counsel to such Liquidity Facility Provider to the effect that such Liquidity Facility is not required to be registered pursuant to the Securities Act of 1933, as amended. Any Liquidity Facility for any Notes must have an initial term of at least 364 days and become effective no later than the date any then-existing Liquidity Facility expires or terminates, and must be in an amount sufficient to pay the principal of and interest on such Notes issued from time to time as such Notes become due, including any such Notes Outstanding on the effective date of such Liquidity Facility. The Issuing and Paying Agent will surrender any then-existing Liquidity Facility for any Notes upon receipt of any alternate Liquidity Facility for such Notes. Any extension or renewal of any Liquidity Facility will not be considered an alternate Liquidity Facility. 8

15 PROJECTS The Notes may be issued for the purposes of: (1) financing any costs of the Projects, which consist of any purposes for which the Issuer may issue or incur obligations under the Act; (2) refinancing any other Notes when due, provided that any Notes issued to refinance any other Notes will not be issued more than 15 days prior to the maturity date of such other Notes being so refinanced; (3) providing for capitalized interest on such Notes; and (4) paying any costs of issuance of such Notes. LITIGATION As of the date of this Offering Memorandum, there is no litigation or other proceeding pending or, to the knowledge of the Issuer, threatened, in any court, agency or other administrative body, restraining or contesting the issuance of the Notes or the payment of the principal of and interest on the Notes, or in any way affecting the validity of the Notes, the resolutions authorizing the Notes or the Issuing and Paying Agency Agreement. ENFORCEABILITY OF RIGHTS AND REMEDIES The enforceability of the rights and remedies of the Issuing and Paying Agent or the owners of the Notes under the Notes or the Issuing and Paying Agency Agreement and the availability of remedies to any party seeking to enforce the Notes or the Issuing and Paying Agency Agreement are in many respects dependent upon actions which are often subject to discretion and delay. Under existing constitutional and statutory law and judicial decision, including specifically Title 11 of the United States Code (the federal bankruptcy code), the enforceability of the rights and remedies under the Notes or the Issuing and Paying Agency Agreement and the availability of remedies to any party seeking to enforce the Notes or the Issuing and Paying Agency Agreement may be limited. The various legal opinions to be delivered concurrently with the delivery of the Master Note will be qualified as to the enforceability of the various legal instruments by limitations imposed by the valid exercise of the constitutional powers of the State and the United States of America and bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). These exceptions would include any exercise of federal, State or local police powers (including the police powers of the State), in a manner consistent with the public health and welfare. The enforceability of the Issuing and Paying Agency Agreement and the Notes and the availability of remedies to a party seeking to enforce the Issuing and Paying Agency Agreement and the Notes in a situation where such enforcement or availability may adversely affect public health and welfare may be subject to these police powers. CERTAIN LEGAL MATTERS Certain legal matters incidental to the authorization and issuance of the Notes are subject to the approval of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel. The form of approving opinion of Bond Counsel with respect to the Notes is attached as Appendix C. Certain legal matters will be passed upon for the Issuer by Jacqueline A. Simmons, Esquire, Vice President and General Counsel to the Issuer. Certain legal matters will be passed upon for the Dealer by Barnes & Thornburg LLP, Indianapolis, Indiana, special counsel to the Dealer. Bond Counsel has not been engaged, and has not undertaken independently, to verify any information contained in this Offering Memorandum, except that representatives of such firm participating in the issuance of the Notes have reviewed the information under the headings INTRODUCTION, NOTES, SOURCES OF PAYMENT OF NOTES, ENFORCEABILITY OF RIGHTS AND REMEDIES, CERTAIN LEGAL MATTERS and TAX MATTERS and in Appendices A and C hereto, and determined that such information conforms in all material respects to the provisions of the documents and the other matters set forth therein. Bond Counsel has not undertaken to review the accuracy or completeness of statements under any other heading of this Offering Memorandum, including in particular matters relating to the financial condition of the Issuer, other financial data concerning the Issuer or the Projects, and Bond Counsel expresses no opinion thereon nor assumes any responsibility therefor. The Issuer has established procedures for review by Bond Counsel in connection with subsequent designations of additional Series of Notes, and the Issuer has covenanted to obtain an opinion of Bond Counsel, 9

16 addressed to the Issuer, the Issuing and Paying Agent and the Dealer, in connection with the initial issuance of each subsequent Series, to the effect that the requirements of the Issuing and Paying Agency Agreement for the issuance of such Series have been satisfied, and that the provisions of the opinion of Bond Counsel dated May 15, 2018, will apply to that Series from the date of initial issuance, to the extent applicable. Taxable Notes TAX MATTERS Interest on the Taxable Notes will not be excludable from gross income for federal income tax purposes. In the opinion of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, under existing laws, interest on the Taxable Notes, when issued, will be exempt from income taxation in the State of Indiana. See Appendix C for the form of Bond Counsel opinion. The accrual or receipt of interest on the Taxable Notes may affect an owner s federal or state tax liability in other ways. The nature and extent of these other tax consequences will depend upon the owner s particular tax status and the owner s other items of income or deduction. Bond Counsel expresses no opinion regarding any other such tax consequences. Prospective purchasers of the Taxable Notes should consult their own tax advisors with respect to the other tax consequences of owning the Taxable Notes. The foregoing does not purport to be a comprehensive description of all of the tax consequences of owning the Taxable Notes. Prospective purchasers of the Taxable Notes should consult their own tax advisors with respect to the foregoing and other tax consequences of owning the Taxable Notes. Tax-Exempt Notes In the opinion of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, under existing laws, regulations, judicial decisions and rulings, interest on the Tax-Exempt Notes, when issued, will be excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the Code ), and will not be a specific preference item for purposes of the federal alternative minimum tax, although Bond Counsel observes that it will be included in adjusted current earnings in calculating corporate alternative minimum taxable income for taxable years that began prior to January 1, The opinion of Bond Counsel will be based on certain certifications, covenants and representations of the Issuer and will be conditioned on continuing compliance therewith. In the opinion of Bond Counsel, under existing laws, interest on the Tax-Exempt Notes, when issued, will be exempt from income taxation in the State of Indiana. See Appendix C for the form of Bond Counsel opinion. The Code imposes certain requirements which must be met subsequent to the issuance of the Tax-Exempt Notes as a condition to the exclusion from gross income of interest on the Tax-Exempt Notes for federal tax purposes. Noncompliance with such requirements may cause interest on the Tax-Exempt Notes to be included in gross income for federal tax purposes retroactive to the date of issue, regardless of the date on which noncompliance occurs. Should the Tax-Exempt Notes bear interest that is not excluded from gross income for federal income tax purposes, the market value of the Tax-Exempt Notes would be materially and adversely affected. Code. The Tax-Exempt Notes are not qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Indiana Code imposes a franchise tax on certain taxpayers (as defined in Indiana Code 6-5.5) which, in general, include all corporations which are transacting the business of a financial institution in Indiana. The franchise tax is measured in part by interest excluded from gross income under Section 103 of the Code minus associated expenses disallowed under Section 265 of the Code. The accrual or receipt of interest on the Tax-Exempt Notes may affect an owner s federal or state tax liability in other ways. The nature and extent of these other tax consequences will depend upon the owner s particular tax status and the owner s other items of income or deduction. Bond Counsel expresses no opinion 10

17 regarding any other such tax consequences. Prospective purchasers of the Tax-Exempt Notes should consult their own tax advisors with respect to the other tax consequences of owning the Tax-Exempt Notes. The foregoing does not purport to be a comprehensive description of all of the tax consequences of owning the Tax-Exempt Notes. Prospective purchasers of the Tax-Exempt Notes should consult their own tax advisors with respect to the foregoing and other tax consequences of owning the Tax-Exempt Notes. There are or may be pending in the Congress of the United States legislative proposals, including some that carry retroactive effective dates, that, if enacted, could alter or amend the federal tax matters referred to above or affect the market value of the Tax-Exempt Notes. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to obligations issued prior to enactment. Prospective purchasers of the Tax-Exempt Notes should consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation. RATINGS Moody s Investors Service, Inc. ( Moody s ), has assigned the Notes a rating of P-1 and S&P Global Ratings, a division of Standard & Poor s Financial Services LLC ( S&P ), has assigned the Notes a rating of A-1+. A rating reflects only the views of the rating agency assigning such rating, and an explanation of the significance of such rating may be obtained from such rating agency. There is no assurance that any of the ratings will continue for any period of time or that any of the ratings will not be revised downward or withdrawn entirely by any such rating agency if, in its judgment, circumstances so warrant. Any such downward revision or withdrawal of any such rating may have an adverse effect on the market price or marketability of the Notes. DEALER The Issuer has appointed Wells Fargo Bank, National Association, as Dealer for the Notes, pursuant to the Dealer Agreement. Under the Dealer Agreement, (1) the Issuer has no obligation to sell any Notes to the Dealer or to permit the Dealer to arrange any sale of any Notes for the account of the Issuer and (2) the Dealer has no obligation to purchase any Notes from the Issuer or to arrange any sales of any Notes for the account of the Issuer. However, if the Issuer and the Dealer agree on the terms of the purchase of any Note by the Dealer or the sale of any Note arranged by the Dealer (including compensation for the Dealer s services under the Dealer Agreement) pursuant to the Dealer Agreement, the Issuer will cause such Note to be issued and delivered in accordance with the Issuing and Paying Agency Agreement and payment for such Note will be made by the purchaser thereof, either directly or through the Dealer, to the Issuing and Paying Agent, for the account of the Issuer. Under the Dealer Agreement, the Dealer may at any time resign as dealer upon 30 days prior written notice to the Issuer and the Issuing and Paying Agent, and the Issuer may at any time remove the Dealer as dealer upon 30 days prior written notice to the Dealer and the Issuing and Paying Agent. Wells Fargo Securities is the trade name for certain securities-related capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, National Association, which conducts its municipal securities sales, trading and underwriting operations through the Wells Fargo Bank, NA Municipal Products Group, a separately identifiable department of Wells Fargo Bank, National Association, registered with the Securities and Exchange Commission as a municipal securities dealer pursuant to Section 15B(a) of the Securities Exchange Act of Wells Fargo Bank, N.A., acting through its Municipal Products Group ( WFBNA ), the Dealer for the Notes, utilizes the distribution capabilities of its affiliate, Wells Fargo Clearing Services, LLC (which uses the trade name Wells Fargo Advisors ) ( WFA ), for the distribution of certain securities offerings, including the Notes. WFBNA has entered into an agreement (the WFSLLC Distribution Agreement ) with its affiliate, Wells Fargo Securities, LLC ( WFSLLC ), for the distribution of municipal securities offerings, including the Notes. Pursuant to the WFSLLC Distribution Agreement, WFBNA pays a portion of WFSLLC s expenses based on WFSLLC s 11

18 municipal securities transactions. WFBNA, WFSLLC and WFA are each wholly-owned subsidiaries of Wells Fargo & Company. The Dealer s responsibilities include marketing the Notes that are issued from time to time (subject, in each case, to the terms of the Issuing and Paying Agency Agreement and the Dealer Agreement), all as further described in this Offering Memorandum. The Dealer is appointed by the Issuer and is paid by the Issuer for its services. As a result, the interests of the Dealer may differ from those of existing holders and potential purchasers of the Notes. CERTAIN RELATIONSHIPS Certain subsidiaries of Wells Fargo & Company (parent company of Wells Fargo Bank, National Association, serving as the Dealer for the Notes through the Wells Fargo Bank, NA Municipal Products Group) have provided, from time to time, investment banking services, commercial banking services or advisory services to the Issuer, for which they have received customary compensation. Wells Fargo & Company or its subsidiaries may, from time to time, engage in transactions with and perform services for the Issuer in the ordinary course of their respective business. CONTINUING DISCLOSURE The offering of the Notes is exempt from Rule 15c2-12 (the Rule ) under the Securities Exchange Act of 1934 and, accordingly the Issuer has not entered into an agreement to provide continuing disclosure for the benefit of the holders of the Notes. However, the Issuer currently provides continuing disclosure filings, including annual financial statements of the Issuer, with the Municipal Securities Rulemaking Board (the MSRB ), pursuant to continuing disclosure agreements related to previous debt offerings. These filings by the Issuer are currently available from the MSRB. The Issuer s current continuing disclosure obligations may be modified or terminated in the future in accordance with the prior continuing disclosure agreements and the Rule, without any notice to or consent from the Issuing and Paying Agent or the holders of any Notes. FINANCIAL REPORT The Financial Report of the University for the fiscal year ended June 30, 2017, is attached as Appendix B to this Offering Memorandum. The Financial Report of the University for the fiscal year ended June 30, 2017, is also available on the MSRB s Electronic Municipal Market Access internet website ( EMMA ), as part of the Annual Disclosure Document of the University, dated December 20, 2017, posted on EMMA on December 22, 2017 (the 2017 Annual Disclosure Document ). ADDITIONAL INFORMATION Copies of the Master Note, the Issuing and Paying Agency Agreement and the Dealer Agreement may be obtained upon request to the Issuer at Indiana University, Capital Finance, Poplars 214, 400 East Seventh Street, Bloomington, Indiana Copies of the Master Note, the Issuing and Paying Agency Agreement and the Dealer Agreement may also be obtained upon request to the Dealer at Wells Fargo Bank, National Association, 550 South Tryon Street, 4 th Floor, Charlotte, North Carolina 28202, Attention: Municipal Products Group, Short-Term Trading. The information contained in any document provided by the Issuer, either directly or indirectly through an indenture trustee or a designated agent, to the MSRB and available to the public on EMMA, including the 2017 Annual Disclosure Document, is hereby included herein by specific reference thereto. The information contained in any supplement or amendment to any such document, which supplement or amendment is, subsequent to the date of this Offering Memorandum and prior to the termination of the offering of the securities offered hereby, provided by the Issuer, either directly or indirectly through an indenture trustee or a designated agent, to the MSRB and available to the public on EMMA, is hereby deemed to be included herein by specific reference thereto from the date of such provision and availability. 12

19 The information contained in this Offering Memorandum, or in any document included or deemed to be included herein by specific reference thereto, is hereby deemed to be modified or superseded for purposes of this Offering Memorandum to the extent that the information contained in this Offering Memorandum, or in any subsequently provided document included or deemed to be included herein by specific reference thereto, modifies or supersedes such information. Any such information so modified or superseded is hereby deemed, except as so modified or superseded, not to constitute a part of this Offering Memorandum. This Offering Memorandum includes information by specific reference to certain information contained in certain documents, which information is not presented herein and which documents are not delivered herewith. The Issuer will provide without charge to each person to whom this Offering Memorandum is delivered, upon request of such person, a copy of any or all such documents. Such documents are available upon request to the Issuer at Indiana University, Capital Finance, Poplars 214, 400 East Seventh Street, Bloomington, Indiana References to website addresses presented herein or in any document included or deemed to be included herein by specific reference thereto are for informational purposes only and may be in the form of a hyperlink solely for the reader s convenience. Unless specified otherwise, such websites and the information or links contained therein are not incorporated or included into, and are not part of, this Offering Memorandum. MISCELLANEOUS To the extent any statements made in this Offering Memorandum involve matters of opinion, forecasts or estimates, whether or not expressly stated, they are set forth as such and not as representations of fact. Appendices A, B and C are an integral part of this Offering Memorandum and must be read together with all other parts of this Offering Memorandum. This Offering Memorandum has been authorized by The Trustees of Indiana University. THE TRUSTEES OF INDIANA UNIVERSITY By: /s/ Donald S. Lukes Treasurer 13

20 [THIS PAGE INTENTIONALLY LEFT BLANK]

21 APPENDIX A DEFINITIONS CERTAIN TERMS USED IN THIS OFFERING MEMORANDUM, INCLUDING THE APPENDICES TO THIS OFFERING MEMORANDUM, ARE DEFINED IN THIS APPENDIX A. Act means Indiana Code and, where applicable, Indiana Code through 10, Indiana Code and Indiana Code , 3 and 5, and any successor statutes. Available Funds for Notes means, with respect to the Notes of any Series: (1) any and all moneys of the Issuer which are legally available for the payment of any obligations under the Notes or any Liquidity Facility upon which the Issuing and Paying Agent may draw to make payment of principal of and interest on the Notes of such Series, including (but not limited to) unrestricted operating fund balances, auxiliary fund balances and certain other fund balances of the Issuer, in each case without any priority among any such fund balances and only to the extent not pledged, restricted or specifically authorized for other purposes, now or in the future, or otherwise restricted by law, but excluding mandatory student fees or state appropriations except to the extent such funds are expressly authorized for this purpose by the Indiana General Assembly; (2) any and all proceeds from the Notes or any Refunding Bonds; and (3) any and all proceeds from any drawings on any applicable Liquidity Facility upon which the Issuing and Paying Agent may draw to make payment of principal of and interest on the Notes of such Series. Business Day means a day other than (1) a Saturday or Sunday or legal holiday or a day on which banking institutions in any of the cities in which the principal offices of the Issuer, the Issuing and Paying Agent and the Dealer and the office of any Liquidity Facility Provider at which demands for payment under any Liquidity Facility of such Liquidity Facility Provider then in effect are to be presented are located are authorized by law or executive order to close or (2) a day on which the New York Stock Exchange is closed. Dealer means Wells Fargo Bank, National Association, acting as dealer under the Dealer Agreement, and any successor thereto or substitute therefor. Dealer Agreement means the Commercial Paper Dealer Agreement dated as of May 1, 2018, between the Issuer and the Dealer, and any successor or substitute dealer agreement entered into by the Issuer with respect to the Notes or any portion thereof. DTC means The Depository Trust Company, New York, New York. Final Maturity Date for the Notes means May 1, 2033, as such date may be either extended or advanced by the Issuer in a supplement to the Issuing and Paying Agency Agreement. Issuer means The Trustees of Indiana University, a body politic created and existing under the laws of the State of Indiana, or any successor entity. Issuing and Paying Agency Agreement means the Issuing and Paying Agency Agreement between the Issuer and the Issuing and Paying Agent, dated as of May 1, 2018, and the Addendum thereto from the Issuer, dated as of May 1, Issuing and Paying Agent means U.S. Bank National Association, and its successors and assigns, including any replacement Issuing and Paying Agent appointed by the Issuer. Liquidity Facility means any letter of credit, standby bond purchase agreement, line of credit, loan, guaranty, revolving credit agreement or other credit or liquidity facility, upon which the Issuing and Paying Agent may draw to make payment of principal of and interest on the Notes of any Series. A-1

22 Liquidity Facility Provider means the provider of any applicable Liquidity Facility. Master Note means the Master Note, evidencing the Notes Outstanding while such Notes are in bookentry form. Moody s means Moody s Investors Service, Inc. Notes means the Indiana University Commercial Paper Notes, to be issued by the Issuer under the Issuing and Paying Agency Agreement, in one or more Series, at any time Outstanding. except: Outstanding, when used with reference to any Notes and as of any particular date, means all such Notes, (1) any such Notes canceled by the Issuer, or on the Issuer s behalf, at or before such date; (2) any such Notes held by the Issuer; (3) any such Notes deemed to have been paid within the meaning of the Issuing and Paying Agency Agreement or any instrument authorizing such Notes; and (4) any such Notes in lieu of or in substitution for which any other Notes have been executed and delivered pursuant to the Issuing and Paying Agency Agreement or any instrument authorizing such Notes. Projects means any purposes for which the Issuer may issue or incur obligations under the Act. Refunding Bonds means permanent financing issued to refinance any Notes, or any projects financed on an interim basis by any Notes, to be issued under the provisions of the Act. S&P means S&P Global Ratings, a division of Standard & Poor s Financial Services LLC. Series means a designation of a series of Notes as part of a single issue for federal tax purposes, by reference to the year of initial issuance, combined with a letter beginning with A and the words (Tax-Exempt) or (Taxable). State means the State of Indiana. Taxable Notes means Notes the interest on which has, upon issuance, been designated by the Issuer as not excludable from gross income for federal income tax purposes. Tax-Exempt Notes means Notes the interest on which has, upon issuance, been designated by the Issuer as excludable from gross income for federal income tax purposes. University means Indiana University. A-2

23 APPENDIX B FINANCIAL REPORT OF THE UNIVERSITY FOR THE FISCAL YEAR ENDED JUNE 30, 2017

24 [THIS PAGE INTENTIONALLY LEFT BLANK]

25 Indiana University Annual Financial Report

26 Table of Contents Indiana University Financial Report Message from the President 1 5 Independent Auditor s Report 6 Management s Discussion and Analysis 9 Statement of Net Position 19 IU Foundation Statement of Financial Position 20 Statement of Revenues, Expenses, and Changes in Net Position 21 IU Foundation Statement of Activities 22 Statement of Cash Flows 23 Notes to the Financial Statements 25 Excerpts from the IU Foundation Notes to Financial Statements 52 Required Supplementary Information Additional Information 65 On the Cover: A bronze sculpture of Bloomington s famous composer and songwriter Hoagy Carmichael, performing at his grand piano outside the IU Cinema on the Bloomington campus. INDIANA UNIVERSITY Financial Report

27 Message from the President The Honorable Eric J. Holcomb Governor, State of Indiana State House, Room West Washington Street Indianapolis, IN Dear Governor Holcomb: On behalf of the Trustees of Indiana University, I am pleased to present to you IU s Financial Report. In 2020, Indiana University will celebrate its 200th anniversary. Indiana University was founded on January 20, 1820, on the promise to the people of the newly established state of Indiana that the civic, cultural, social, and economic life of the state and its citizens would be expanded and enriched by an exceptional public institution of higher education. As a public institution, IU is deeply committed to accessible, innovative, and relevant. IU is also proud to serve as one of the most powerful forces for economic development in our state. Even as we work diligently to preserve IU s great traditions and unmatched heritage, we continue to character of our campuses, ensure that they remain magnets for the best and most deserving students, and elevate IU s ever-growing reputation as a truly world-class institution. AN AFFORDABLE AND CLEAR PATH TO HIGHER EDUCATION, PROVIDING THE SKILLS AND EXPERIENCE STUDENTS NEED FOR SUCCESS Along with Indiana s other colleges and universities, IU is fully engaged in responding to the call to ensure generate greater numbers of Hoosier graduates, and ensure they leave our schools with the skills and experiences they need to succeed in the workforce. For Indiana to remain viable in today s ultra-com- and experienced workers who will thrive in an ever-evolving economy. We need those employees to possess global cultural understanding and experience and have the ability to work productively with we need to continue working hard to keep our best and brightest in our state after they graduate. to our state. In May 2017, a record number of more than 21,000 students received IU degrees during commencement ceremonies across our state. IU s class of 2017 represented the largest group of graduates to be produced by any institution in Indiana in fact almost as large as the next two combined and it was also one of its most distinguished. The class included Wells Scholars, Goldwater Scholars, a Boren Scholar, and a Rhodes Scholar. Viewed in terms of sheer size, the class of 2017 shows again how IU is truly the state s higher education Hoosiers continue to place on an IU education. These graduates also serve as a powerful reminder of IU s huge impact on the health, social and cultural fabric, and economic vitality of the Hoosier state. This fall, IU s Bloomington and Indianapolis campuses welcomed their largest, brightest, and most diverse freshman classes ever. With this year s student INDIANA UNIVERSITY Financial Report

28 Message from the President continued body numbering more than 112,000 and given that 70 percent of currently enrolled degree-seeking undergraduates are in-state students IU will be by far the largest producer of Hoosier graduates annually in Indiana for the foreseeable future. Across the state, IU is preparing our students to meet their fullest potential, make major contributions to the economic development and quality of life in the communities in which they live and work, and our planet. IU students are also being exposed to what it will take to meet the needs of our employers particularly in those strategic sectors of the state s economy, such as information technology, public health, and the life sciences sectors we know will be vital to the growth of our state. But the state of Indiana simply cannot has become more strategic, deliberate, and intentional areas of importance to students, as well as Indiana employers. To this end, IU has recently established a large number of new schools and academic programs in such key disciplines as art and design, international studies, media, philanthropy, and public health all designed to meet the evolving needs of our students and all based on a strong liberal arts foundation that has made American higher education the best and most admired in the world. Last year, we launched a new engineering program at IU Bloomington, and in degree in the campus s new School of Art and Design that will have its primary focus on Columbus, an internationally recognized center for architecture. The architecture degree also anticipates a major state employment need. According to the Indiana Department of Workforce Development, employment of architects is projected to grow more than 20 percent through LEADING THE NATION IN STUDENT DEBT REDUCTION At the same time that IU is graduating more students and producing more on-time graduates than ever, we have placed an even greater priority on ensuring that students leave IU with as little debt as possible. In recent years, the university has instituted a number of highly successful programs to keep the cost of attendance as low as possible while also educating our students on the implications of incurring debt. Indiana resident undergraduates attending the during the last two-year tuition cycle. And students on all other campuses experienced only very modest increases during the last two years. low as possible, for some students, taking on debt is the only way to achieve their dream of a college education. Hence, we have a responsibility to help those students keep their debt load to a minimum and better understand the implications of borrowing. program and adopted more vigorous policies to on-time graduation borrowing by IU students has been reduced by nearly $100 million in four years. Total student borrowing and federal loans have Furthermore, 45 percent of our bachelor s degree recipients will graduate with no student loan debt compared with less than 30 percent nationally and 80 percent will graduate with a balance below the national average. underscore the fact that Indiana University leads the nation in the area of student debt reduction an area that is of great concern nationally and one that There is, of course, more work to be done to control the cost of education, further reduce student debt, and help more students graduate on time. But our which have been widely praised and adopted by other colleges and universities, clearly have us on the right path moving forward. Initiatives such as these, when coupled with a $37 million increase in institutional gift aid for undergraduate students over the last four years across the IU campuses a 28 percent increase made possible, INDIANA UNIVERSITY Financial Report

29 Message from the President continued in large part, by the extraordinary generosity of our donors have kept the average net cost of an IU education low compared to our peers. These and completion. FINDING SOLUTIONS TO THE GRAND CHALLENGES OF OUR TIME Another major component of Indiana University s heritage is its longstanding status as a national leader in research and the home of scholars of outstanding international recognition. As part of the Bicentennial Strategic Plan for Indiana University, a sweeping set of vital goals approved by the IU Board of Trustees in 2014, the university has massively expanded its commitment to direct support of IU researchers. Two years ago, we announced the most ambitious program of research support in the university s history the Grand Challenges Program. This program proposes to invest, in the years leading up to IU s bicentennial, solutions to the grand challenges of our time solutions that will provide major improvements in the quality of life for the citizens of the state of Indiana who have helped support IU for nearly 200 years. Sample Gates, Bloomington In June 2016, I was very pleased to announce that the Precision Health Initiative was selected as the Principal Investigator Dr. Anantha Shekhar of the IU School of Medicine, the Precision Health Initiative will seek to cure at least one cancer to prevent one chronic illness and one neurodegenerative disease. In May 2017, we announced the second project funded through our Grand Challenges Program Prepared for Environmental Change. This project, which is backed by a broad, bipartisan coalition of leaders, will help Indiana communities track environmental change and measure their preparedness for responding to immediate challenges and long- in agriculture, industry, infrastructure, and public health. IU is also working closely with communities around poverty, lack of economic opportunity, and poor educational and health outcomes, including the growing crisis of opioid addiction that is rapidly becoming one of the nation s most severe public health problems. INDIANA UNIVERSITY Financial Report

30 Message from the President continued INTERNATIONAL ENGAGEMENT At IU, we are especially proud of the leading role we continue to play in our state s and also America s international engagement. Of all that comprises an IU education, international literacy and experience ranks at the very top. We live in increasingly challenging times, when the need to understand and engage with the broader world is at its most acute and urgent. The world in which our students will live will require more, not less, knowledge about the world. include: requiring a mandatory international component for every student as part of his or her IU education; doubling, over the last decade, the number of IU students who study abroad. IU Bloomington now ranks 10th in the nation out of about 1,200 universities in terms of the number of students who study abroad. About a third of IU Bloomington students have studied abroad by the time they graduate; welcoming a large and diverse international student body who now come from over 150 countries. We currently have around 9,000 international students enrolled across the entire university. IU Bloomington ranks 16th in the nation again, out of about 1,200 universities in terms of the number of international students enrolled; building strong and active partnerships (now numbering around 200) with the best foreign universities in the world; building on IU s formidable resources in language study (we teach over 70 foreign languages, more than any other university in the country) and in area studies, to become one of the nation s pre-eminent centers of research and scholarship rapidly achieving through our new School of Global and International Studies; supporting and encouraging our faculty from all disciplines in engaging internationally; and growing the IU Global Gateway Network, which Delhi, to help focus and concentrate our activities in key regions of the world. CONCLUSION I am proud to say that IU remains steadfastly committed to the educational and service missions that have made it such a positive force in the life of our state, nation, and world. And we have embraced thoughtful and strategic change that both builds upon IU s longstanding strengths and traditions and bolsters our future. We have worked together to establish learning environments on all of our campuses that give our students every opportunity to succeed. We have re-envisioned our schools and programs so they provide a relevant education of lasting value. We have ensured that an IU education remains policies that encourage our students to persist to graduation and complete their degrees on time. sity continues to regard the funding it receives as a public trust. We are deeply grateful for the support we receive from state appropriations, donor contributions, grants, contracts, and student fees, and are committed to achieving the best return on all of those investments. We also remain dedicated research and to our engagement in the successful future of the state. As we approach Indiana University s bicentennial, we must commit to strengthening our powerful partnership with the state of Indiana and its citizens and to extending that partnership over the next 200 years. Yours sincerely, Michael A. McRobbie President INDIANA UNIVERSITY Financial Report

31 Dear President McRobbie and the Trustees of Indiana University: I am pleased to present to you the Indiana University in accordance with generally accepted accounting principles and Governmental Accounting Standards Board (GASB) principles. The accompanying notes Discussion and Analysis are integral parts of the The statements are intended to provide a summary 2016, through June 30, The statements report sity Foundation are incorporated in the Indiana State Board of Accounts. Their opinion on The Indiana University Financial Report is a consolidated report incorporating all seven campuses for and also includes all auxiliary operations. The information presented in the Management s Discussion health. Overall, these indicators show that Indiana University continues to have a strong balance sheet across the institution. tion had an increase in net position of $154,254,000, uate tuition and fee rate increases in 2017 and 2016 were the lowest in more than 35 years, ranging from a tuition freeze for Indiana residents on the Bloomington campus to a 1.65% increase for residents on the IUPUI campus. Regional campus undergraduate tuition and fee rates increased an average of 1.65%. Complementing these moderate tuition increases - - university who have allowed us to continue to invest in the programs and facilities required to educate and prepare students to contribute to the state, the for university operations was $558,111,000, while support for capital projects was $31,083,000. Simultaneously, donor support brought into the university was $136,468,000. Indiana University is one of seven public universities that hold an Aaa long-term credit rating from Moody s Investor Services, as well as an AAA rating the Board of Trustees, the quality of our academic programs, our ability to plan for the future, and our ardship of Indiana University s resources, I submit year ending June 30, John A. Sejdinaj INDIANA UNIVERSITY Financial Report

32 Management's Responsibility for the Financial Statements Auditor's Responsibility Government Auditing Standards Government Auditing Standards. 6

33 Opinions Other Matters Required Supplementary Information Other Information Government Auditing Standards Government Auditing Standards 7

34 Government Auditing Standards 8

35 Management s Discussion and Analysis INTRODUCTION The following discussion and analysis provides an activities of Indiana University (the university ) selected comparative information for the years ended June 30, 2016 and This discussion has been prepared by management and should be statements and accompanying footnotes. the Statement of Revenues, Expenses, and Changes in Net Position; and the Statement of Cash Flows. note disclosures, and discussion and analysis have been prepared in accordance with Governmental Accounting Standards Board (GASB) principles. Bloomington campus The Indiana University Foundation, Inc. corporation under the laws of the State of Indiana for the exclusive purpose of supporting the university by receiving, holding, investing, and administering property and making expenditures to or for the sidered a component unit of the university, which requires discrete presentation. Accordingly, the IU sented in their original formats on separate pages, The Indiana University Building Corporation (IUBC) and is shown in a blended presentation with the and development of university facilities by owning and leasing such facilities to the university on a lease-purchase basis. ABOUT THE FINANCIAL STATEMENTS The Statement of Net Position is the university s balance sheet. The statement presents the uni- resources are deducted, and is one indicator of the The Statement of Revenues, Expenses, and Changes in Net Position is the university s income statement. The statement presents the total revenues recognized and expenses incurred by the university decrease in net position, with comparative information university s revenue streams, along with the categories of expenses supported by that revenue. Changes in net position are an indication of improvement or The Statement of Cash Flows provides additional by presenting detailed information about cash in- reports the major sources and uses of cash and is useful in the assessment of the university s ability to obligations as they come due. INDIANA UNIVERSITY Financial Report

36 Management s Discussion and Analysis continued STATEMENT OF NET POSITION and net position at June 30, 2017, 2016, and 2015, is summarized as follows: Condensed Statement Of Net Position (in thousands of dollars) June 30, 2017 June 30, 2016 June 30, 2015 Current assets $ 649,905 $ 681,215 $ 739,585 Capital assets, net 3,147,159 2,984,285 2,815,801 Other assets 1,677,406 1,645,925 1,691,873 Total assets 5,474,470 5,311,425 5,247,259 Current liabilities 388, , ,327 Noncurrent liabilities 1,268,799 1,230,957 1,268,297 Net investment in capital assets 2,200,168 2,048,226 1,924,031 Restricted net position 230, , ,663 Unrestricted net position 1,434,658 1,416,985 1,382,935 ASSETS Current Assets Current assets include those that are used to support current operations and consist primarily of cash and cash equivalents, net receivables, and short-term investments. Cash balances support commitments to strategic initiatives, capital projects, employee quirements, along with ongoing operational needs. a function of the university s operating, capital and Current assets decreased $31,310,000, or 5%, and $58,370,000, or 8%, in 2017 and 2016, respectively. The decrease in 2017 is primarily attributable to a decrease of $51,263,000, or 18%, in cash and cash equivalents, due in large part to a payment of $32,656,000 made to the Indiana Public Employees Retirement Fund to reduce the university s net pension liability (see Note 12, Retirement Plans). cash equivalents related to spending of invested bond proceeds on capital projects, in contrast to the net investment of bond proceeds in Net accounts receivable increased $22,600,000, or 18%, and decreased $16,636,000, or 12%, in 2017 and 2016, respectively. The increase in 2017 resulted auxiliary revenue cycles, along with the timing of the receipt of gifts. The decrease in 2016 was primarily due to a state operating appropriation receivable of $9,386,000 at June 30, 2015, which was received in July Noncurrent Assets Major components of noncurrent assets are endowment and operating investments and capital assets, net of accumulated depreciation. Noncurrent assets increased $194,355,000, or 4%, and $122,536,000, or 3%, in 2017 and 2016, respectively. The fair value of the university s noncurrent investments increased $31,337,000, or 2%, and decreased $45,301,000, or 3%, in 2017 and 2016, respectively. The increase in 2017 was a result of market value changes during the year in the university s operating and endowment investments. The decrease in 2016 was largely due to tactical asset reallocation to short-term investments and cash equivalents as of June 30, INDIANA UNIVERSITY Financial Report

37 Management s Discussion and Analysis continued The objective of the university s investment policy with respect to its operating funds is to adequately provide for the daily liquidity needs of the university while maximizing the opportunity to generate yield on investments. Endowment funds are managed by the IU Foundation using a disciplined, consistent, and strategic direction of the Foundation Investment Committee and the laws of the State of Indiana. Capital Assets The university s investment in capital assets, net of depreciation, which includes land, art and museum objects, infrastructure, equipment, and buildings, grew $162,874,000, or 5%, and $168,484,000, or 6%, in 2017 and 2016, respectively. Additions to capital assets are comprised of new construction and renovations, as well as major investments in equipment and information technology. Construction in progress, which totaled $228,213,000 at June 30, 2017, and $224,336,000 at June 30, 2016, includes academic and administrative building projects, student residence hall improvements, and construction of research facilities. In accordance with the university s master plan and Bicentennial Strategic Plan, the university is committed to building for excellence to ensure that the university has the new and renovated physical facilities and infrastructure to excel, while recognizing the importance of historical stewardship, an imperative to meet future needs. Use of these new learning and research spaces, while encouraging Key projects placed in service during 2017 include the following: The Paul H. O Neill Graduate Center is now housed in an addition to the School of Public and Environ- The $14,700,000 addition was partially funded by generous gifts. The 34,000-square-foot facility now houses SPEA s top-ranked graduate programs with ration spaces supported by new technology; lounges for graduate students, undergraduates, faculty and windows; limestone accent walls; a 2,300-square- the Herman B Wells Library and the arboretum. For more than 40 years, Assembly Hall in Bloomington has been the site of IU men s and women s basketball games, commencement ceremonies, concerts, and speeches by presidents and world leaders. A $43,580,000 renovation project, made possible through a gift from Cindy Simon Skjodt, was completed in October 2016, in time for the start of the facility s 46th basketball season. The renovations preserve one of the greatest home-court advantages in college basketball and also modernize the historic facility. The renamed Simon Skjodt Assembly Hall students. The renovations also include the creation of the Mark Cuban Center for Sports Media and Technology, which will give IU s media and technology students an opportunity to use cutting-edge technology and equipment to produce high quality videos and other content for IU Athletics. North Hall, completed on the Indiana University- Purdue University at Indianapolis (IUPUI) campus in August of 2016 at a cost of $47,100,000, is the since the campus was founded in The residence hall was designed to promote student interaction through the creation of welcoming common spaces, including a grand lobby and microlounges, through- building provides housing for 700 students. The building also features a computer lab, a game room, area, and two classrooms. The Student Events and Activities Center on the IU East campus promotes student success and opportunities for engagement and leadership through a wellness, physical education, athletics, student activities, and special events. The $4,800,000 cost of the building was funded in part through IU East campus largest ever gift from an alumnus. INDIANA UNIVERSITY Financial Report

38 Management s Discussion and Analysis continued The following table and chart represent the composition of total assets as of June 30, 2017: Total Assets (in thousands of dollars) Cash and investments $ 2,048, % Receivables 149, % Capital assets 3,147, % Other assets 129, % Total assets $ 5,474, % 2.4% 37.4% 57.5% 2.7% Total Assets Cash and investments Receivables Capital assets Other assets DEFERRED OUTFLOWS OF RESOURCES sumption of resources applicable to a future reporting period, but do not require a further exchange of goods sumption of net position applicable to a future reporting period and so will not be recognized as expenses or expenditures until then. Certain changes in resources related to the net pension liability, including changes in investment returns of resources. The amounts recorded also include deferred charges on refundings of capital debt. LIABILITIES Current Liabilities Current liabilities are those expected to become due year. Current liabilities consist of accounts payable; accrued compensation; and the current portion of compensated absences, unearned revenue, longterm debt, and capital lease obligations. Current liabilities decreased $28,369,000, or 7%, and increased $32,299,000, or 8%, in 2017 and 2016, respectively. Accounts payable and accrued liabilities decreased $33,624,000, or 13%, in In April 2013, the university implemented a freeze of its PERF participation under which non-exempt employees hired on or after July 1, 2013, would Indiana General Assembly passed a law, which retroactively imposed a new funding obligation for employers who had previously made the decision to freeze PERF participation. The university recorded this obligation at June 30, 2016, and made payment to satisfy this obligation in August 2016, resulting in a decrease in current accounts payable as of June 30, 2017 (see Note 12, Retirement Plans). Noncurrent Liabilities Noncurrent liabilities increased $37,842,000, or 3%, and decreased $37,340,000, or 3%, in 2017 and 2016, respectively. Other noncurrent liabilities pensated absences. Compensated absences are comprised of employee vacation and sick leave and balances. In 2015, the university adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions, requiring governments time. In accordance with the statement, the university recorded a net pension liability of $95,689,000 and $98,279,000 at June 30, 2017 and 2016, respectively (see Note 12, Retirement Plans). INDIANA UNIVERSITY Financial Report

39 Management s Discussion and Analysis continued DEBT AND FINANCING ACTIVITY Institutional borrowing capacity is a valuable resource that is actively managed in support of the institutional mission. Bonds, notes, and capital lease obligations totaled $1,085,679,000 and $1,027,324,000 at June 30, 2017 and 2016, respectively. Student Fee Bonds, Series X (Series X) with a par amount of $71,710,000. Series X new money Renovation Phase II project for the renovation of Kirkwood Hall, Swain Hall, and Ernie Pyle Hall on the Bloomington campus. Series X proceeds were additionally used to current refund a portion of Student Fee Bonds, Series R and advance refund a portion of Student Fee Bonds, Series U. Bond proceeds were also used to pay costs to issue the bonds, including underwriters discount. At issuance, the all-in true interest cost for Series X was 2.26%. The Series X refunding bonds produced a net present value savings of $2,270,000, which was 7.54% of refunded par bonds. Lease-Purchase Obligations, Series 2017A with a par amount of $74,575,000 as new money bonds. The Academy and Related Stadium Renovations project and the Eskenazi Museum of Art Renovations project on the Bloomington campus. Bond proceeds were also used to pay capitalized interest and costs to issue the bonds, including underwriters discount. The true interest cost for LPO Series 2017A was 3.71%. The university s ratings on debt obligations were February 7, 2017, S&P Global Ratings rated the university s most recent lease-purchase obligations rating on all student fee bonds, consolidated revenue chase obligations issued by the university as AAA with a stable outlook. On February 7, 2017, Moody s Investors Service rated the university s most recent lying rating on all student fee bonds, consolidated revenue bonds, lease-purchase obligations, and outlook. The following table and chart represent the composition of total liabilities as of June 30, 2017: Total Liabilities (in thousands of dollars) Accounts payable and accrued liabilities $ 223, % Unearned revenue 105, % Capital debt 1,085, % Net pension liability 95, % Other liabilities 146, % Total Liabilities Accounts payable and accrued liabilities Unearned revenue Capital debt Net pension liability Other liabilities 5.8% 8.8% 65.5% 13.5% DEFERRED INFLOWS OF RESOURCES tion of resources applicable to a future reporting period, but do not require a further exchange of acquisition of net position applicable to a future reporting period and so will not be recognized as revenue until then. The amounts recorded are related to the net pension liability. 6.4% INDIANA UNIVERSITY Financial Report

40 Management s Discussion and Analysis continued NET POSITION Net position is the residual of all other elements presented in the Statement of Net Position. Net position Net investment in capital assets consists of the university s investment in capital assets, such as equipment, buildings, land, infrastructure, and improvements, net of accumulated depreciation and related debt. Restricted net position consists of amounts subject to externally imposed restrictions governing usage and is divided into two subcategories: o Restricted non-expendable funds are subject to externally imposed stipulations that they be retained in perpetuity. These balances represent the corpus (historical value) of the university s permanent endowment funds. o Restricted expendable funds are available for expenditure by the university, but must be spent according to restrictions imposed by third parties. Unrestricted net position includes amounts institutionally designated or committed to The following table and chart represent the composition of net position as of June 30, 2017: Total Net Position (in thousands of dollars) Net investment in capital assets $ 2,200, % Restricted 230, % Unrestricted 1,434, % 37.1% 6.0% 56.9% Net Position Net investment in capital assets Restricted Unrestricted The university s net investment in capital assets taining and enhancing the university s mission and strategic plans. The net investment in capital assets increased $151,942,000, or 7%, and $124,195,000, or 6%, in 2017 and 2016, respectively. Growth in this area is managed according to the university s long-range capital plans, along with operating units needs to support programs and operating needs. Restricted net position decreased $15,361,000, or 6%, and $52,589,000, or 18%, in 2017 and 2016, respectively. Variances in both years are largely due Unrestricted net position is subject to internal designations and commitments for academic and research initiatives, capital projects, and unrestricted quasiand term endowment spending plans. Unrestricted net position increased $17,673,000, or 1%, and $34,050,000, or 2%, in 2017 and 2016, respectively. Unrestricted net position represents resources available for ongoing operational needs and for funding to support the university s mission in changing economic environments. Total net position increased $154,254,000, or 4%, and $105,656,000, or 3%, in 2017 and 2016, respectively. Net position at June 30, 2017, was $3,865,539,000. INDIANA UNIVERSITY Financial Report

41 Management s Discussion and Analysis continued STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION erating or nonoperating, in accordance with GASB Trends in the relationship between operating revenues and expenses are important indicators of are received for providing goods and services and include tuition and fees, grants and contracts, sales and services, and auxiliary revenue. Scholarship aid in excess of amounts owed for tuition, fees, and housing are recorded as expenses. Nonoperating revenues include state appropriations, revenue from certain grants and contracts, gifts, and investment income. Operating expenses are those incurred to carry out the normal operations of the university. As a public university, Indiana University is required by GASB standards to report certain revenue sources that are an integral part of operations as nonoperating revenues. A summarized comparison of the university s revenues, expenses, and changes in net position is presented below: Condensed Statement of Revenues, Expenses, and Changes in Net Position (in thousands of dollars) Fiscal Year Ended June 30, 2017 June 30, 2016 June 30, 2015 Operating revenues $ 2,316,022 $ 2,256,204 $ 2,207,604 Operating expenses (3,063,303) (2,941,624) (2,863,815) Total operating loss (747,281) (685,420) (656,211) Nonoperating revenues 876, , ,232 Nonoperating expenses (33,308) (31,668) (34,520) Income before other revenues, expenses, gains, or losses 95,972 77,840 90,501 Other revenues 58,282 27,816 47,904 Net position, beginning of year 3,711,285 3,605,629 3,591,188 Adjustment per change in accounting principle (123,964) Net position, beginning of year, as restated 3,467, % 4.2% 2.5% Revenues % 36.3% 10.8% 14.5% 9.6% Student fees, net Grants and contracts Other operating revenue Auxiliary enterprises State appropriations Investment income Gifts Other nonoperating revenue Revenues % 3.6% 1.1% 17.7% 10.5% 10.0% 37.6% 15.2% INDIANA UNIVERSITY Financial Report

42 Management s Discussion and Analysis continued School of Public and Environmental Affairs, Bloomington Operating revenues increased $59,818,000, or 3%, and $48,600,000, or 2%, during 2017 and 2016, respectively. The university supports its operations with diverse revenue sources, of which the largest single source is student tuition and fees. Tuition and fees, net of scholarship allowances, increased $24,978,000, or 2%, and $36,857,000, or 3%, during 2017 and 2016, respectively and represents 36% of total revenue in Tuition and fee revenue is enrollment, and the mix of student levels and residency. The university s Bicentennial Strategic Plan for students. Representative of this commitment, undergraduate tuition and fee rate increases in 2017 and 2016 were the lowest in more than 35 years and ranged from a tuition freeze for Indiana residents on the Bloomington campus to 1.65% for residents on the IUPUI campus. Regional campus undergraduate tuition and fee rate increases increased an average of 1.65%. The university receives revenue for sponsored programs from various government tion of which is related to federal research. Federal operating grant and contract revenue increased $21,833,000, or 7%, and $4,375,000, or 1%, in 2017 and 2016, respectively. Total operating grant and contract revenues from all sources remained rela- increased 4% in Operating expenses increased $121,679,000, or 4%, and $77,809,000, or 3%, in 2017 and 2016, total operating expenses, represent the largest single university expense. The university s strategic plan makes a clear statement of commitment to recruit and retain an outstanding, diverse and inclusive faculty from researchers, scholars, teachers, and creative artists worldwide who are recognized as among $71,847,000, or 4%, in 2017 and 2016, respectively. attracting and retaining employees and the university has implemented initiatives in recent years to control costs without compromising the competitiveness ible Health Plan (HDHP) lowers employer premiums while providing employees with greater control over healthcare spending. Approximately 95% of employees were enrolled in a HDHP in While overall health care costs have increased, the university s cost per employee is at or below market benchmarks. and scholarship allowances increased $21,673,000, or 6%, and totaled $415,787,000 in The INDIANA UNIVERSITY Financial Report

43 Management s Discussion and Analysis continued 2017 increase of $4,971,000 in travel expenses is primarily attributable to the auxiliary enterprises, research, and instruction functions. Energy and utilities expense increased $2,656,000, or 4%, in A combination of rate increases, a warmer cooling season, and new buildings contributed to overall increased utility costs, while the university contin- energy and utilities expense decreased $4,619,000, or 6%. Factors contributing to the decline in 2016 included favorable natural gas pricing, as well as electricity savings attributed to increased energy well as a reduction in electric loads with conversions to LED lighting. Nonoperating revenues, net of interest expense, increased $79,993,000, or 10%, and $16,548,000, or 2%, in 2017 and 2016, respectively. State operating appropriations are comprised of appropriations to support the primary general educational mission of the university and student fee replacement appropriations for the purpose of reimbursing a portion of the university s debt service for certain academic facilities. The state of Indiana appropriates operating funds to the state s colleges and universities on a performance-based funding model focused on key student success measures. Non-capital state appropriations totaled $558,111,000 in 2017, and is the university s second largest revenue source, after tuition and fees. Investment income increased $49,858,000, or 153%, in 2017, largely driven by a combination of realized and unrealized gains. Investment income increased $8,849,000, or 37%, to $32,543,000 in 2016, primarily due to unrealized gains compared to unrealized losses in realized losses. Gift revenue increased $24,389,000, or 22%, as various academic departments leveraged IU Foundation endowments to support scholarships and fellowships. The university recognized $54,256,000 and $27,814,000 in 2017 and 2016, respectively, in capital appropriations and capital gifts and grants for repairs, renovations, and improvements across all campuses. Revenue recognized as capital appro- funding is brought in to the university according to the needs of the schools and campuses. STATEMENT OF CASH FLOWS The Statement of Cash Flows provides information year. The statement assists in evaluating the univer- its obligations as they become due and aids in analy- is divided into four sections based on major activity: the operating income or loss on the Statement of Revenues, Expenses, and Changes in Net Position to the net cash used in operations. A summarized comparison of the university s changes in cash and cash equivalents is presented below: Comparative Statement of Cash Flows (in thousands of dollars) Fiscal Year Ended June 30, 2017 June 30, 2016 June 30, 2015 Net cash provided (used) by: Operating activities $ (651,135) $ (518,997) $ (533,968) Investing activities 52, ,200 (119,267) Net increase (decrease) in cash Beginning cash and cash equivalents 278, , ,876 INDIANA UNIVERSITY Financial Report

44 Management s Discussion and Analysis continued The university s cash and cash equivalents decreased $51,263,000 and $2,299,000 in 2017 and 2016, consists primarily of student fees, grants and contracts, and auxiliary enterprise receipts. Payments to employees represent the largest use of cash for including state appropriations, federal Pell grants, and private noncapital gifts, are used to fund operating activities. Fluctuations in capital and related of shifts between cash equivalents and longer-term investments. cash equivalents as short-term investments. This equivalents at original maturities of 90 days or less in order to better align our reporting with the characteristics of short-term highly liquid investments. ECONOMIC OUTLOOK After experiencing a year-over-year revenue decline of 0.5% in 2016, 2017 forecasted state revenues rebounded and were $106,800,000, or 0.7%, above Move-In Day at Memorial Hall, Bloomington forecast and $454,300,000, or 3.1%, above 2016 collections. Sales tax collections, the largest single state tax revenue source, grew at a relatively strong rate of 3.7% over 2016, while individual income tax collections grew at a strong rate of 4.2% over Rounding out the state s Big 3 tax revenues, corporate income tax collections declined by 0.5% from 2016, but exceeded forecast. It is important to note that state tax revenues in 2017 were impacted modestly by individual and business income tax cuts enacted by the General Assembly in recent years. These tax cuts are being phased-in over several years and considering even their modest impact, supports the conclusion that 2017 was a good tax collection year for the state. Despite some drawdown of state reserves, primarily for one-time spending on streets strong with total reserve balances totaling $1,777,100,000 at June 30, 2017, or 11.5%, of state operating revenues. For 2018, total state revenues were forecast in April 2017 to increase by $420,900,000, or 2.8%, over 2017 revenues. However, because actual revenue collections in 2017 were above forecast, revenue growth of $314,100,000, or 2.1%, is required to achieve the 2018 revenue forecast level. Barring unexpected economic events, this forecast level should be achievable. Indiana s unemployment rate was 4.5% at the in July 2016 and ended the a preliminary rate of 3.0%. Indiana s rate compared favorably to the national unemployment rate of 4.4% in June In conclusion, both Indiana and the national economies are expanding, albeit in an environment in which much economic uncertainty exists. INDIANA UNIVERSITY Financial Report

45 Statement of Net Position (in thousands of dollars) June 30, 2017 June 30, 2016 ASSETS Current assets Cash and cash equivalents $ 227,459 $ 278,722 Accounts receivable, net 149, ,586 Current portion of notes and pledges receivable 14,703 15,091 Inventories 9,675 8,980 Short-term investments 201, ,672 Other assets 46,975 49,164 Total current assets 649, ,215 Noncurrent assets Notes and pledges receivable 58,473 58,329 Investments 1,618,933 1,587,596 Capital assets, net 3,147,159 2,984,285 Total noncurrent assets 4,824,565 4,630,210 Total assets 5,474,470 5,311,425 LIABILITIES Current liabilities Accounts payable and accrued liabilities 223, ,253 Unearned revenue 82,009 83,440 Current portion of capital lease obligations 1,286 1,044 Current portion of long-term debt 81,333 74,889 Total current liabilities 388, ,626 Noncurrent liabilities Capital lease obligations 2,217 2,373 Notes payable 188, ,310 Assets held in custody for others 78,807 79,705 Unearned revenue 23,767 28,591 Bonds payable 812, ,708 Other long-term liabilities 67,476 72,991 Net pension liability 95,689 98,279 Total noncurrent liabilities 1,268,799 1,230,957 NET POSITION Net investment in capital assets 2,200,168 2,048,226 Restricted for: Nonexpendable - endowments 59,075 54,406 Expendable Scholarships, research, instruction, and other 120, ,899 Loans 18,720 19,396 Capital projects 15,226 27,037 Debt service 16,941 21,336 Unrestricted 1,434,658 1,416,985 INDIANA UNIVERSITY Financial Report

46 20

47 Statement of Revenues, Expenses, and Changes in Net Position (in thousands of dollars) Fiscal Year Ended June 30, 2017 June 30, 2016 OPERATING REVENUES Student fees $ 1,452,395 $ 1,402,098 Less scholarship allowance (271,601) (246,282) Federal grants and contracts 320, ,221 State and local grants and contracts 19,088 24,437 Nongovernmental grants and contracts 130, ,893 Sales and services of educational units 39,422 41,358 Other revenue 274, ,032 Auxiliary enterprises (net of scholarship allowance of $35,689 in 2017 and $32,023 in 2016) 352, ,447 OPERATING EXPENSES Energy and utilities 76,121 73,465 Travel 59,967 54,996 Supplies and general expense 617, ,528 Depreciation and amortization expense 155, ,707 NONOPERATING REVENUES (EXPENSES) State appropriations 558, ,330 Grants and contracts 99, ,976 Investment income 82,401 32,543 Gifts 136, ,079 Interest expense (33,308) (31,668) Income before other revenues, Capital appropriations 31,083 14,844 Capital gifts and grants 23,173 12,970 Additions to permanent endowments 4,026 2 Net position, beginning of year 3,711,285 3,605,629 INDIANA UNIVERSITY Financial Report

48 22

49 Statement of Cash Flows (in thousands of dollars) Fiscal Year Ended June 30, 2017 June 30, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Student fees $ 1,175,160 $ 1,160,481 Grants and contracts 459, ,814 Sales and services of educational activities 39,522 42,670 Auxiliary enterprise charges 350, ,954 Other operating receipts 270, ,015 Payments to employees (2,027,110) (1,945,497) Payments to suppliers (776,351) (671,415) Student loans collected 12,266 11,716 Student loans issued (10,777) (10,260) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State appropriations 554, ,930 Nonoperating grants and contracts 99, ,976 Gifts and grants received for other than capital purposes 140, ,897 Direct lending receipts 518, ,963 Direct lending payments (518,878) (533,914) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital appropriations 31,083 14,844 Capital grants and gifts received 21,925 6,211 Purchase of capital assets (319,393) (304,465) Proceeds from issuance of capital debt, including refunding activity 134,977 30,595 Principal payments on capital debt (65,864) (61,987) Principal paid on capital leases (1,886) (9,330) Interest paid on capital debt and leases (48,797) (47,222) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments 8,493,813 5,637,759 Investment income 46,970 46,348 Purchase of Investments (8,488,130) (5,566,907) Cash and cash equivalents, beginning of year 278, ,021 Cash and cash equivalents, end of year $ 227,459 $ INDIANA UNIVERSITY Financial Report

50 Statement of Cash Flows continued (in thousands of dollars) Fiscal Year Ended June 30, 2017 June 30, 2016 RECONCILIATION OF OPERATING LOSS TO NET CASH USED IN OPERATING ACTIVITIES Operating loss $ (747,281) $ (685,420) Adjustments to reconcile operating loss to net cash used in operating activities: Depreciation and amortization expense 155, ,707 Loss on disposal of capital assets 3,242 8,567 Changes in assets and liabilities: Accounts receivable (15,438) 8,485 Inventories (695) 578 Other assets 2, Notes receivable Accounts payable and accrued liabilities (37,384) 6,783 Unearned revenue (6,255) (12,249) Assets held in custody for others (898) 496 Other noncurrent liabilities 706 8,126 Net pension liability and related deferreds (5,117) (5,711) INDIANA UNIVERSITY Financial Report

51 Indiana University Notes to the Financial Statements Note 1 Organization and Summary of ORGANIZATION: Indiana University (the university ) is a major public research institution with Core campuses are located in Bloomington and Indianapolis ( Indiana University Purdue University at Indianapolis, or IUPUI ), and regional campuses are located in Richmond ( IU East ), Kokomo ( IU Kokomo ), Gary ( IU Northwest ), South Bend ( IU South Bend ), and New Albany ( IU Southeast ). schools, colleges, and departments as part of the comprehensive reporting entity. The university was established by state legislative act in 1838, changing the name of its predecessor, Indiana College, to Indiana University. The university s governing body, the Trustees of Indiana University (the trustees ), is comprised of nine members charged by Indiana statutes with policy and decision-making authority to carry out the programs and missions of the university. Six of the members are appointed by the Governor of Indiana, and three are elected by university alumni. The university is a state-supported income tax under Section 501(a) of the Internal Revenue Code, as an organization described in Section 501(c)(3), and also under Section 115(a). Certain revenues of the university may be subject to federal income tax as unrelated business income under Internal Revenue Code Sections 511 to 514. BASIS OF PRESENTATION:cial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, as prescribed by the Governmental Accounting Standards Board (GASB). The university reports on a consolidated basis, with a comprehensive, entity-wide presentation of the icant intra-university transactions are eliminated upon consolidation. The university follows all applicable GASB pronouncements. The university reports as a special-purpose government entity engaged primarily in business-type economic resources measurement focus and the accrual basis of accounting. Business-type activities charged to external parties for goods and services. with accounting principles generally accepted in the United States of America requires management to reported amounts and disclosures. Actual results As a component unit of the state, the university is included as a discrete entity in the State of Indiana s Comprehensive Annual Financial Report. REPORTING ENTITY: entity consists of the primary government, organiza- accountable, and other organizations for which the primary government are such that exclusion would to be misleading or incomplete. GASB Statement No. 14, The Financial Reporting Entity, additional requirements of GASB Statement No. 39, Determining Whether Certain Organizations Are Component Units, as amended by GASB Statement No. 61, The Financial Reporting Entity: Omnibus, provide criteria for determining whether certain organizations should be reported as component units based on the nature for these organizations. Based on these criteria, the blended and discretely presented component units. DISCRETELY PRESENTED COMPONENT UNIT: The Indiana University Foundation, Inc. (IU Foun- under the laws of the State of Indiana for the exclusive purpose of supporting the university by receiving, holding, investing, and administering property and making expenditures to or for the INDIANA UNIVERSITY Financial Report

52 Notes to the Financial Statements continued considered a component unit of the university which requires discrete presentation. Accordingly, the IU sented in their original formats on separate pages. that reports under FASB standards, including FASB Topic 958, As such, certain revenue recognition criteria and presentation features $162,974,000 and $136,856,000 to the university can be obtained from: Indiana University Foundation, Attn: Controller, PO Box 500, Bloomington, IN BLENDED COMPONENT UNIT: In September 2008, the trustees directed, by resolution, that the Indiana University Building Corporation (IUBC) be university and designated that certain university and development of university facilities by owning and leasing such facilities to the university on a lease-purchase basis. CASH AND CASH EQUIVALENTS: Cash and cash equivalents include all highly liquid investments with original maturities of 90 days or less that bear little or no market risk. Restricted cash and cash equivalents includes unspent bond proceeds restricted for capital expenditures. INVESTMENTS: Investments are carried at fair value, as quoted by the major securities markets. Realized and unrealized gains and losses are reported as a component of investment income in the Statement of Revenues, Expenses, and Changes in Net Position. ACCOUNTS RECEIVABLE: Accounts receivable consist primarily of amounts due from students, grants and contracts, and auxiliary enterprises and are recorded net of estimated uncollectible amounts. NOTES RECEIVABLE: Notes receivable consists primarily of student loan repayments due to the university. CAPITAL ASSETS: Capital assets are recorded at cost at the date of acquisition or fair market value at the date of contribution in the case of gifts. The university capitalizes equipment with a cost of $5,000 or more and a useful life in excess of one year. Capital assets also include land improvements and infrastructure costing in excess of $75,000. Buildings and building renovations that increase the useful life of the building, costing at least the lesser of $75,000 or twenty percent of the acquisition cost of the existing building, are capitalized. Intangible assets with a cost of $500,000 or more are subject to capitalization. Art and museum objects purchased by or donated to the university are capitalized if the value is $5,000 or greater. Depreciation expense is computed using the straight-line method over the estimated useful lives of the respective assets, gen- for library books, ten to forty years for infrastructure buildings and building components. Useful lives for capital assets are established using a combination of the American Hospital Association guidelines, Internal Revenue Service guidelines, and documented university experience. Land and capitalized art and museum collections are not depreciated. DEFERRED OUTFLOWS OF RESOURCES: In addition to assets, the Statement of Net Position sumption of net position that applies to a future of resources (expense/expenditure) until then. sumption of resources that are applicable to a future reporting period, but do not require a further exchange of goods or services. The university s total INDIANA UNIVERSITY Financial Report

53 Notes to the Financial Statements continued resources related to the accumulated deferred charges on refundings of capital debt was and 2016, respectively. The portion of deferred pension liability under GASB Statement No. 68, Accounting and Financial Reporting for Pensions, (GASB 68) was $64,297,000 and $43,293,000 in UNEARNED REVENUE: Unearned revenue is recorded for current cash receipts of student tuition and fees and certain auxiliary goods and services, which will be recorded as revenue in future periods. Also included are amounts received from contract and grant sponsors that have not yet been earned. COMPENSATED ABSENCES: Liabilities for compensated absences are recorded for vacation leave based on actual earned amounts for eligible employees who qualify for termination payments. Liabilities for sick leave are recorded for employees who are eligible for and have earned termination payments for accumulated sick days upon termination or retirement. DEFERRED INFLOWS OF RESOURCES: In addition to liabilities, the Statement of Net Position of net position that applies to a future period and so - represent the acquisition of resources that are applicable to a future reporting period, but do not require a further exchange of goods or services. Deferred pension liability under GASB 68 were $38,220,000 respectively. NET POSITION: The university s net position is categories: Net investment in capital assets: This component of net position includes capital assets, net of accumulated depreciation and outstanding principal debt balances related to the acquisition, construction, or improvement of those assets. Restricted nonexpendable: Assets included in the nonexpendable restricted net position category are subject to externally imposed stip ulations that the principal is to be maintained in perpetuity and invested for the purpose of producing present and future income, which may be either expended or added to principal. Such assets include permanent endowment funds. Restricted expendable: as restricted and expendable are those for which the university is legally obligated to spend in accordance with externally imposed stipulations, or those stipulations that expire with the passage of time. Unrestricted: Unrestricted resources are not subject to externally imposed restrictions and are primarily used for meeting expenses for academic and general operations of the university. When an expense is incurred for which both restricted and unrestricted resources are available, the university s policy is to apply the most appropriate fund source based on the relevant facts and circumstances. REVENUES AND EXPENSES: University revenues nonoperating as follows: Operating revenues: Operating revenues result from exchange transactions, such as student tuition and fees (net of scholarship discounts and allowances), government and other grants and contracts, and sales and services of auxiliary enterprises (net of scholarship discounts and allowances). Operating expenses: Operating expenses are incurred to support exchange transactions resulting in operating revenue. Examples include aid, and supplies and general expense. INDIANA UNIVERSITY Financial Report

54 Notes to the Financial Statements continued Non-operating revenues and expenses: Nonoperating revenues and expenses include those derived from non-exchange transactions such as gifts, certain federal and state grants, and interest expense. Non-operating revenues relied upon for operations, such as state appropriations, federal Pell grants and investment income. SCHOLARSHIP DISCOUNTS AND ALLOWANCES: Student tuition and fees and other student revenues are reported gross with the related scholarship discounts and allowances directly below in the Statement of Revenues, Expenses, and Changes in Net Position. Scholarship discounts and allow- stated charges for goods and services provided by the university and the amounts paid by students and/or third parties making payments on behalf of students. RECLASSIFICATIONS: have been made to prior year statements and certain notes for comparative purposes and do not constitute a restatement of prior periods. cash equivalents as short-term investments. This equivalents at original maturities of 90 days or less in order to better align our reporting with the characteristics of short-term highly liquid investments. either the university s net position or total current assets. 2016, 2015, and 2014 is shown below: (dollar amounts presented in thousands) Fiscal Year ,722 $ 281,021 $ 300,876 Cash and cash equivalents, as originally stated 345, , ,954 (66,485) $ (110,547) $ (13,078) (dollar amounts presented in thousands) Fiscal Year ,672 $ 241,536 $ 71,798 Short-term investments, as originally stated 136, ,989 58,720 66,485 $ 110,547 $ 13,078 INDIANA UNIVERSITY Financial Report

55 Notes to the Financial Statements continued Note 2 Deposits and Investments CUSTODIAL CREDIT RISK DEPOSITS: The combined bank balances of the university s demand deposits were $15,526,000 and $95,351,000 with balances subject to custodial credit risk in the amount of $4,083,000 and $35,167,000 at June 30, 2017 and 2016, respectively. Of this amount, $2,613,000 and $736,000 was uninsured and uncollateralized and $1,470,000 and $34,431,000 was uninsured and collateralized with securities held by and 2016, respectively. The custodial credit risk for deposits is the risk that, in the event of the failure will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The university does not have a formal deposit policy for custodial credit risk, however the university monitors the credit rating todial and commercial banks on a quarterly basis. DEPOSITS AND INVESTMENTS: The trustees body for the invested assets of the university. Indiana Code requires the trustees to exercise the judgment and care required by Indiana Code , the Indiana Uniform Prudent Investor Act. That act requires the trustees to act as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. The trustees have the responsibility to assure the assets are prudently invested in a manner consistent with the university s investment policy. The trustees have delegated the day-to-day responsibilities for overseeing the investment pro- At June 30, 2017 and 2016, the university had deposits and investments, including endowment funds, as shown below: (dollar amounts presented in thousands) June 30, 2017 June 30, 2016 Cash and cash equivalents $ 227,459 $ 278,722 Short-term investments 201, ,672 Investments 1,618,933 1,587,596 prior year for comparative purposes and do not CUSTODIAL CREDIT RISK INVESTMENTS: The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The university manages custodial credit risk through the types of investments that are allowed by investment policy. The university also monitors metrics of its custodial and commercial banks. The university had $4,190,000 and $1,606,000 exposed to custodial credit risk at June 30, 2017 and 2016, respectively. The university had $36,473,000 and $14,483,000 where custodial credit risk could not be determined at June 30, 2017 and 2016, respectively. The remainder of the university s investments is not investment securities registered in the name of the university, investment securities loaned for collateral received, or other types of investments not exposed to custodial credit risk. INTEREST RATE RISK: Interest rate risk is the risk that changes in interest rates will adversely university s policy for controlling its exposure to fair value losses arising from increasing interest rates is to constrain average portfolio duration within ranges of a target portfolio duration set for each portfolio of operating fund investments. The portfolios may seek to enhance returns by attempting to time movements of interest rates within the allowable ranges. INDIANA UNIVERSITY Financial Report

56 Notes to the Financial Statements continued The university had deposits and investments with the following maturities at June 30, 2017: (dollar amounts presented in thousands) Fair Value Maturities (in years) Deposit and Investment Type June 30, 2017 Less than More than 10 Deposits and investments with maturity date Corporate bonds $ 631,855 $ 247,563 $ 288,368 $ 56,332 $ 39,592 Asset-backed securities 285,155 2, ,692 32, ,016 Government bonds 401,174 58, ,531 88,951 65,146 Government issued asset-backed securities 107, ,420 12,684 64,798 Fixed income funds 22,375 22,375 Total deposits and investments Deposits and investments with undetermined maturity date External investment pools 238, ,758 Money market funds 294, ,586 Government issued asset-backed securities 34,157 34,157 All other 7,758 7,758 Total deposits and investments with undetermined maturity date 575, ,259 North Hall, Indianapolis INDIANA UNIVERSITY Financial Report

57 Notes to the Financial Statements continued The university had deposits and investments with the following maturities at June 30, 2016: (dollar amounts presented in thousands) Fair Value Maturities (in years) Deposit and Investment Type June 30, 2016 Less than More than 10 Deposits and investments with maturity date Corporate bonds $ 674,102 $ 217,171 $ 315,177 $ 84,828 $ 56,926 Asset-backed securities 368,437 5, ,112 48, ,538 Government bonds 320,090 15, ,644 84,824 67,656 Government issued asset-backed securities 87, ,718 16,354 59,128 Money market funds 67,957 67,957 Fixed income funds 28,626 28,626 Total deposits and investments Deposits and investments with undetermined maturity date External investment pools 218, ,309 Money market funds 158, ,199 Government issued asset-backed securities 27,607 27,607 All other 83,952 83,952 Total deposits and investments with undetermined CREDIT RISK: obligations. The weighted average credit quality of each portfolio of university operating funds investments must guidelines. At June 30, 2017 and 2016, university deposits and investments had debt securities with associated credit ratings as shown below: (dollar amounts presented in thousands) Fair Value Percentage of Fair Value Percentage of Credit Quality Rating June 30, 2017 Total Pool June 30, 2016 Total Pool AAA $ 255, % $ 258, % AA 390, % 355, % A 209, % 221, % BBB 209, % 234, % BB 77, % 106, % Below BB 250, % 248, % Not rated 654, % 644, % INDIANA UNIVERSITY Financial Report

58 Notes to the Financial Statements continued CONCENTRATION OF CREDIT RISK: Concentration of credit risk is the risk of loss attributed to the magnitude of a government s investment in a single issuer. The university s investment policy requires the extent that the securities of any single issuer shall be limited to 3.5% of the market value in a particular manager s portfolio. U.S. Government and U.S. governmental agency securities are exempt from this policy requirement. FOREIGN CURRENCY RISK: Foreign currency risk is the risk that changes in exchange rates will deposits and investments. The university s policy for controlling exposure to foreign currency risk is to constrain deposits and investments in non-u.s. dollar denominated debt to 25% of an individual guidelines. Minimal foreign currency exposure could occur if one of the university s investment managers purchases non-u.s. dollar holdings and does not hedge the currency. At June 30, 2017 and 2016, the university had immaterial amounts of deposits and investments exposed to foreign currency risk. ENDOWMENTS: Endowment funds are managed pursuant to an Investment Agency Agreement between the Trustees of Indiana University ( trustees ) and the IU Foundation dated November 14, 2005, which delegates investment management responsibilities to the IU Foundation. Indiana Code , Uniform Management of Institutional Funds, sets forth the provisions governing the investment of endowment assets and the expenditure of endowment fund appreciation. The code requires that the trustees and their agents act in good faith and with the care a prudent person acting in a like position would use under similar circumstances, with respect to the investment of endowment assets. The code also sets forth provisions governing the expenditure of endowment fund appreciation, under which the trustees may authorize expenditure, consistent with donor intent. The trustees may, at their discretion, direct all or a portion of the university s endowment funds to other deposits or investments, exclusive of the IU Foundation s investment funds. The spending policy of the trustees is to distribute 4.5% of the twelve quarter rolling average of pooled fund values. Funds held by endowments managed by the IU Foundation are used to acquire pooled shares. The amounts of net appreciation on investments of donor-restricted endowments that are available for expenditure are $34,898,000 and $27,742,000 as of June 30, 2017 and 2016, respectively. These amounts are reported as expendable restricted for scholarships, research, instruction, and other in net position. Endowment funds have a perpetual investment horizon and, as appropriate, may be invested in asset classes better suited to IU Foundation s longer time horizon, including but not limited to: stocks, bonds, real estate, private placements, and alternative investments. Endowment assets may be invested in pooled funds, direct investments, or a combination high quality stocks and bonds. Additional asset classes such as absolute return, private equity, and real asset investments, may be included when it is reasonable to expect these investments will either increase return, reduce risk, or both. Participation in the pooled investments is achieved by owning units of the Pooled Long-Term Fund and considered an external investment pool to the university. At June 30, 2017, all endowments held with the IU Foundation were invested in pooled funds. The manager selection, investment style, and asset type to avoid any disproportionate risk related to any one industry or security. POOLED SHORT TERM FUND (PSTF): Spending policy distributions from the Endowment funds are held in the PSTF until utilized by the university. The IU Foundation s PSTF Investment Policy Statement governs the deposit and investment of PSTF assets. Objectives of the PSTF include providing for the preservation of capital for account holders and maintenance of adequate liquidity to meet spending requirements. The PSTF deposits and investments are managed to mitigate interest rate risk and protect the fund against a concentration of credit risk. The IU Foun- INDIANA UNIVERSITY Financial Report

59 Notes to the Financial Statements continued Agreements to $10,000,000 per issuer with the exception of U.S. Treasuries and Agencies, or accounts collateralized by Treasuries or Agencies. In addition, individual funds or managers such as money market funds and short-term bond funds, are not to exceed $50,000,000 or 15% of the portfolio. Note 3 Fair Value Measurements The university categorizes its fair value measurements within the fair value hierarchy as established by GASB Statement No. 72, Fair Value Measurement and Application. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical measurements as of June 30, 2017: (dollar amounts presented in thousands) Fair Value Measurements Using Quoted Prices in Identical Observable Unobservable Assets Inputs Inputs June 30, 2017 (Level I) (Level 2) (Level 3) Investments by fair value level: Debt securities Corporate bonds $ 488,325 $ $ 485,322 $ 3,003 Collateralized obligations and mortgage-backed securities 428, ,658 1,349 Government bonds 388, , Bank loans 32,844 32,844 Commingled funds 22,375 22,375 Municipal and provincial bonds 9,224 9,224 External investment pool 238, ,758 Real estate 6,269 6,269 All other 14, ,191 3 Investments measured at the net asset value (NAV): Commingled bond fund 146,499 Venture capital 1,113 INDIANA UNIVERSITY Financial Report

60 Notes to the Financial Statements continued The university had the following recurring fair value measurements as of June 30, 2016: (dollar amounts presented in thousands) Fair Value Measurements Using Quoted Prices in Identical Observable Unobservable Assets Inputs Inputs June 30, 2016 (Level I) (Level 2) (Level 3) Investments by fair value level: Debt securities Corporate bonds $ 564,265 $ $ 562,228 $ 2,037 Collateralized obligations and mortgage-backed securities 487, ,161 6,005 Government bonds 301, ,104 3,034 Commingled funds 37,159 37,159 Municipal and provincial bonds 11,336 11,336 Bank loans 9,195 9,195 External investment pool 218, ,309 Real estate 2,245 2,245 All other 6, ,023 Investments measured at the net asset value (NAV): Commingled bond fund 103,303 Venture capital 1,604 Total investments measured at the NAV 104,907 In instances where inputs used to measure fair value archy, fair value measurements in their entirety are categorized based on the lowest level input that is - fair value measurements requires judgment and and 2016, are valued using prices quoted in active markets for those securities. The fair value of debt securities at June 30, 2017 and 2016, was determined primarily based on level 2 inputs. The university estimates the fair value of these investments using observable market-based inputs. Observable inputs are those that market participants would use in pricing the asset based on market data obtained from independent sources such as quoted market prices, reported sales of similar securities, and reference data. The fair value of debt securities at level 3 as of June 30, 2017 and 2016, was determined using INDIANA UNIVERSITY Financial Report

61 Notes to the Financial Statements continued extrapolated data, proprietary models, indicative quotes, or similar techniques taking into account the characteristics of the asset. The fair value of external investment pools at June 30, 2017 and 2016, was determined primarily based on level 3 inputs. A monthly valuation assigned to the shares of the pool is used to determine the portion of the investment pool, $229,152,000 and $208,808,000 respectively at June 30, 2017 and 2016, was held at the IU Foundation. The fair value hierarchy of the foundation s investments can be found in Note 17, Excerpts from Indiana University Foundation Notes to Financial Statements. The university holds several parcels of real estate for investment purposes. The fair values of these properties are based on appraisals received in June year, the level was reduced from a level 2 at June 30, 2016, to a level 3 at June 30, The fair value of all other investments at June 30, 2017 and 2016, was determined primarily based on level 2 inputs. The university estimates the fair value of these investments using observable market-based inputs. The university holds shares or interests in commingled bond funds where the fair value of the investment is measured on a recurring basis using net asset value per share (or its equivalent) of the investment company as a practical expedient. The commingled bond fund s investment objective is to invest primarily in a portfolio of higher-yielding commitments and the investment can be redeemed with a written three-day notice. The university holds shares or interests in a venture capital investment company where the fair value of the investment is measured on a recurring basis using net asset value per share (or its equivalent) of the investment company as a practical expedient. the objective that 60% of these are in Indiana and commitment was $4,000 and $70,000 as of June 30, 2017 and 2016, respectively. This investment cannot be redeemed until the sixteenth anniversary of the Note 4 Accounts Receivable Accounts receivable consisted of the following at June 30, 2017 and 2016: (dollar amounts presented in thousands) June 30, 2017 June 30, 2016 Student accounts $ 48,814 $ 44,337 Auxiliary enterprises and other operating activities 72,165 59,686 Federal, state, and other grants and contracts 20,472 21,417 Capital appropriations and gifts 10,113 1,723 Other 7,712 8,940 Less allowance for uncollectible accounts (10,090) (9,517) INDIANA UNIVERSITY Financial Report

62 Notes to the Financial Statements continued Note 5 Capital Assets Fiscal year ended June 30, 2017 (dollar amounts presented in thousands) Balance Balance June 30, 2016 Additions Transfers Retirements June 30, 2017 Assets not being depreciated: Land $ 77,409 $ 4,581 $ $ 1,466 $ 80,524 Art & museum objects 89,238 4, ,928 Construction in progress 224, ,017 (145,138) 2 228,213 Total capital assets not being depreciated 390, ,339 (145,138) 1, ,665 Other capital assets: Infrastructure 225,690 9,741 3, ,810 Intangibles 12,329 12,329 Land improvements 74,662 7,186 1, ,723 Equipment 435,492 38,836 8,375 20, ,971 Library books 201,386 7,502 22, ,732 Buildings 3,870,066 99, , ,100,948 Total other capital assets 4,819, , ,138 43,404 5,084,513 Less accumulated depreciation for: Infrastructure 154,373 5, ,404 Intangibles 7,617 1,606 9,223 Land improvements 25,430 4, ,529 Equipment 319,095 34,814 19, ,411 Library books 113,216 19,402 22, ,470 Buildings 1,606,592 90, ,696,982 Total accumulated depreciation, other capital assets 2,226, ,553 41,857 2,340,019 Gymnasium inside Student Events & Activity Center, Richmond INDIANA UNIVERSITY Financial Report

63 Notes to the Financial Statements continued Fiscal year ended June 30, 2016 (dollar amounts presented in thousands) Balance Balance June 30, 2015 Additions Transfers Retirements June 30, 2016 Assets not being depreciated: Land $ 70,826 $ 6,583 $ $ $ 77,409 Art & museum objects 82,124 7, ,238 Construction in progress 143, ,869 (89,515) ,336 Total capital assets not being depreciated 296, ,983 (89,515) ,983 Other capital assets: Infrastructure 205,457 17,833 2, ,690 Intangibles 11, ,329 Land improvements 68,653 5, ,662 Equipment 429,971 28,759 6,651 29, ,492 Library books 212,934 10,877 22, ,386 Buildings 3,722,365 75,028 79,467 6,794 3,870,066 Total other capital assets 4,651, ,065 89,515 59,112 4,819,625 Less accumulated depreciation for: Infrastructure 149,951 4, ,373 Intangibles 6,056 1,561 7,617 Land improvements 21,725 3,705 25,430 Equipment 313,635 33,997 28, ,095 Library books 114,924 20,716 22, ,216 Buildings 1,525,380 86,302 5,090 1,606,592 Total accumulated depreciation, other capital assets 2,131, ,707 56,055 2,226,323 Accounts payable and accrued liabilities consisted of the following at June 30, 2017 and 2016: (dollar amounts presented in thousands) June 30, 2017 June 30, 2016 Accrued payroll $ 16,417 $ 29,139 Accrual for compensated absences 46,826 43,231 Interest payable 12,095 8,334 Vendor and other payables 148, ,549 INDIANA UNIVERSITY Financial Report

64 Notes to the Financial Statements continued Note 7 Other Liabilities Fiscal year ended June 30, 2017 (dollar amounts presented in thousands) Balance Balance June 30, 2016 Additions Reductions June 30, 2017 Current Bonds, notes, and capital leases payable: Bonds payable $ 907,838 $ 52,781 $ 73,060 $ 887,559 $ 74,736 Notes payable 116,069 83,502 4, ,617 6,597 Capital leases payable 3,417 1,545 1,459 3,503 1,286 Total bonds, notes, and capital leases payable 1,027, ,828 79,473 1,085,679 82,619 Other liabilities: Unearned revenue 112,031 6, ,776 82,009 Assets held in custody for others 80,201 2,488 82,689 3,882 Compensated absences 72,045 21,417 17,856 75,606 46,826 Other 44, ,220 38,696 Net pension liability 98,279 2,590 95,689 Total 406,733 24,644 32, , ,717 Fiscal year ended June 30, 2016 (dollar amounts presented in thousands) Balance Balance June 30, 2015 Additions Reductions June 30, 2016 Current Bonds, notes, and capital leases payable: Bonds payable $ 939,627 $ 34,737 $ 66,526 $ 907,838 $ 70,130 Notes payable 120,158 4, ,069 4,759 Capital leases payable 2,836 1,739 1,158 3,417 1,044 Total bonds, notes, and capital leases payable 1,062,621 36,476 71,773 1,027,324 75,933 Other liabilities: Unearned revenue 124,280 12, ,031 83,440 Assets held in custody for others 79, , Compensated absences 68,572 20,358 16,885 72,045 43,231 Other 40,425 5,070 1,318 44,177 Net pension liability 101,229 33,336 36,286 98,279 Total 414,353 59,118 66, , ,167 INDIANA UNIVERSITY Financial Report

65 Notes to the Financial Statements continued The university is authorized by acts of the Indiana General Assembly to issue bonds, notes, and other construction of facilities that include academic and administrative facilities, research facilities on the Bloomington and Indianapolis campuses, athletic facilities, parking facilities, student housing, health service facilities, student union buildings, and energy savings projects. At June 30, 2017 and 2016, the university had serial bonds, term bonds, and capital appreciation bonds outstanding with maturities that extend to June 1, The university has both tax-exempt and taxable bonds outstanding. The total outstanding bonds and notes payable at June 30, 2017 and 2016, were $1,082,176,000 and $1,023,907,000, respectively. This indebtedness included principal outstanding at June 30, 2017 and 2016, for bonds issued under Indiana Code (IC) as student fee debt ( Student Fee Bonds ) of $392,121,000 and $391,995,000, respectively and under IC as consolidated revenue bonds of $411,680,000 and $431,860,000, respectively. This indebtedness also included principal outstanding at June 30, 2017 and 2016, for notes issued under IC as lease-purchase (COPs), collectively Obligations, of $177,420,000 and $107,050,000, respectively. Total bonds and notes payable at June 30, 2017 and 2016, have an additional accreted value of outstanding Student Fee Bonds issued as capital appreciation bonds of $3,031,000 and $5,773,000, respectively, which is not in the principal or face value. The calculation of total bonds and notes payable at June 30, 2017 and 2016, includes the addition of bond premium outstanding of $100,955,000 and $93,002,000, respectively. As of June 30, 2017 and 2016, debt service payments to maturity total $1,393,645,000 and $1,314,339,000, respectively, of which $502,880,000 and $444,494,000, respectively, is from bonds eligible for fee replacement appropriations. On a biennial basis, the Indiana General Assembly versity for the purpose of reimbursing a portion of the debt service payments on bonds issued under IC for certain academic facilities. Such academic facilities include classrooms, libraries, laboratories, and other academic support facilities as designated by the Indiana General Assembly. as fee replacement appropriations and are received from the State of Indiana on a semi-annual basis. This appropriation is renewed and supplemented on a biennial basis because state statutes prohibit a sitting General Assembly from binding subsequent General Assemblies with respect to future appropriation of funds. In the 45 years of making fee replacement appropriations, the State has never failed to fully fund or otherwise provide for a fee replacement obligation established by a prior General Assembly. The outstanding principal balances which are eligible for fee replacement appropriations as of June 30, 2017 and 2016, are $386,750,000 and $345,139,000, respectively. In addition to serial and term bonds, the university has issued capital appreciation bonds (CAB). A CAB is a long-term municipal security on which the investment return on an initial principal amount is reinvested at a stated compounded rate until maturity. At maturity, the investor receives both the initial principal amount and the total investment return. CABs are typically sold at a deeply discounted price and are distinct from traditional zero coupon bonds because the investment return is considered to be in the form of compounded interest rather than accreted original issue discount. Total debt service payments to maturity as of June 30, 2017 and 2016, include CAB payments of $3,980,000 and $7,960,000, respectively, of which $225,000 and $450,000 are eligible for fee replacement appropriations, respectively. Consolidated Revenue Bonds are unsecured obligations of the university that carry a promise generated from housing facilities, parking facilities, and other auxiliary facilities along with certain research, health service facilities, and athletic revenues; and secondly, from other legally available funds of the university. INDIANA UNIVERSITY Financial Report

66 Notes to the Financial Statements continued The Indiana University Building Corporation (IUBC) corporation that was formed by the Trustees of Indiana University in Its sole purpose is to assist university facilities by owning and leasing such facilities to the university on a lease-purchase basis. The Obligations are included in the outstanding indebt- notes payable. (dollar amounts presented in thousands) Final Principal Principal Interest Maturity Outstanding Outstanding Bonding Authority Rates Year Ended June 30, 2017 June 30, 2016 Indiana Code (Bonds: Student Fee Bonds) 1.25 to 6.40% 2036 $ 392,121 $ 391,995 Indiana Code (Bonds: Consolidated Revenue Bonds) 1.50 to 5.64% , ,860 Indiana Code (Notes: Obligations Lease Purchase Participation) 2.00 to 5.95% , ,050 Subtotal bonds and notes payable 981, ,905 Add unamortized bond premium 100,955 93,002 As of June 30, 2017, the university did not have any variable rate bonds, notes, or commercial paper outstanding. The principal and interest requirements to maturity for bonds and notes payable are as follows: (dollar amounts presented in thousands) Fiscal Year Total Debt Ended Bond Note Total Bond Note Total Service June 30 Principal Principal Principal Interest Interest Interest Payments 2018 $ 65,931 $ 5,595 $ 71,526 $ 38,890 $ 7,950 $ 46,840 $ 118, ,155 5,800 65,955 33,141 7,732 40, , ,795 7,075 62,870 30,796 7,515 38, , ,200 7,365 64,565 28,346 7,208 35, , ,140 7,670 56,810 25,960 6,883 32,843 89, ,720 39, ,625 94,505 29, , , ,935 45, ,935 42,641 18,909 61, , ,165 32, ,280 15,007 9,973 24, , ,760 20,815 44,575 2,658 4,744 7,402 51, ,080 6, ,540 Bond and note interest shown above are reported gross of (before) any federal interest subsidy as scheduled at issuance to be received on taxable Build America Bonds. INDIANA UNIVERSITY Financial Report

67 Notes to the Financial Statements continued In prior years, the university has defeased several bond issues by issuing new debt. United States Treasury obligations or federal agency securities principal and interest payments when due, through the maturity or call dates of the defeased bonds. These securities or cash have been deposited in irrevocable trusts as required to defease the bonds. The defeased bonds and the related trusts balances debt service, or the university s liabilities. As of June 30, 2017, the previously defeased bonds held in escrow have the following amounts of principal redeemed: (dollar amounts presented in thousands) Defeased Bonds Principal (Refunded) Redeemed Call Date Student Fee Bonds, Series S $ 50,165 8/1/2018 Student Fee Bonds, Series U 19,705 8/1/2021 Consolidated Revenue Bonds, Series 2008A 113,360 6/1/2018 Consolidated Revenue Bonds, Series 2009A 42,965 6/1/2019 Consolidated Revenue Bonds, Series 2011A 5,375 6/1/2020 Total defeased bonds $ 231,570 In February 2009, the United States Congress enacted the American Recovery and Reinvestment Act of 2009 (ARRA). ARRA allowed certain tax advantages to state and local governmental entities when such entities issued qualifying taxable obligations, referred to as Build America Bonds (BABs). While the BAB provisions in ARRA expired as of January 1, 2011, the obligation of the U.S. Treasury to make issuers of BABs were eligible to receive subsidy payments from the U.S. Treasury equal to 35% of the corresponding interest payable on the related BABs, subsidies paid after February 28, 2013, were cut due to the federal sequestration. Through June 30, 2017, BABs subsidies for Student Fee Bonds, Series T-2; Consolidated Revenue Bonds, Series 2010B; and were reduced by $814,000, which was less than Total federal interest subsidies as scheduled at issuance to be received over the life of the BABs debt outstanding as of June 30, 2017, were $21,968,000. BABs subsidies paid between October 1, 2017, and September 30, 2018, are scheduled to be reduced by 6.60% due to the federal sequestration, as com- ending June 30, 2018, the total expected subsidy reductions due to the sequestration is $162,000, which is subject to changes enacted by Congress at subsequent dates. Student Fee Bonds, Series X (Series X) with a par amount of $71,710,000. Series X new money Renovation Phase II project for the renovation of Kirkwood Hall, Swain Hall, and Ernie Pyle Hall on the Bloomington campus. Series X proceeds were additionally used to current refund a portion of Student Fee Bonds Series R and advance refund a portion of Student Fee Bonds Series U. Bond proceeds were also used to pay costs to issue the bonds, including underwriters discount. At issuance, the all-in true interest cost for Series X was 2.26%. The Series X refunding bonds produced a net present value savings of $2,270,000, which was 7.54% of refunded par bonds. Lease-Purchase Obligations, Series 2017A with a par amount of $74,575,000 as new money bonds. Excellence Academy and Related Stadium Renovations project and the Eskenazi Museum of Art Renovations project on the Bloomington campus. Bond proceeds were also used to pay capitalized interest and costs to issue the bonds, including underwriters discount. The true interest cost for LPO Series 2017A was 3.71%. INDIANA UNIVERSITY Financial Report

68 Notes to the Financial Statements continued Note 9 Lease Obligations The university has acquired equipment under various lease-purchase contracts and other capital lease agreements. The cost of equipment held under capital leases totaled $6,069,000 and $5,751,000 as of June 30, 2017 and 2016, respectively. Accumulated amortization of leased equipment totaled $2,757,000 and $2,098,000 at June 30, 2017 and 2016, respectively. Note 10 Federal Obligations Under Student Loan Programs Campus based student loans are funded by new allocations received from the federal government, as well as principal and interest collected from previous student loan recipients. The federal government advanced $2,066,000 and $127,000 for health pro- ended June 30, 2017 and 2016, respectively. The university entered into agreements for the right to use certain infrastructure assets for a given period of time. The cost of the leased infrastructure assets totaled $8,568,000 and $8,100,000 with accumulated depreciation of $703,000 and $217,000 as of June 30, 2017 and 2016, respectively. The university leases certain facilities. The majority of the facility leases include renewal options and some provide for escalation of rent based on changes in operating costs. Scheduled lease payments for the years ending June 30 are as follows: (dollar amounts presented in thousands) Capital Operating 2018 $ 1,418 $ 14, ,248 8, , , , , Total future minimum payments 3,754 $ 48,278 Less: interest (251) Total principal payments outstanding $ 3,503 Liabilities at June 30, 2017 and 2016, for loan programs were as follows: (dollar amounts presented in thousands) June 30, June 30, Current portion of assets held in custody for others $ 3,882 $ 496 Noncurrent liabilities: Federal share of interest 47,623 46,164 Perkins loans 11,483 15,450 Health professions loans 17,142 16,006 Nursing loans 2,559 2,085 Total noncurrent portion of assets held in custody for others 78,807 79,705 Total assets held in Federal Perkins Loan program expired on September 30, Barring any subsequent renewal of the program, Perkins federal funds will be required to be repaid over successive future periods. Note 11 Risk Management The university is exposed to various risks of loss, including torts, theft, damage or destruction of assets, errors or omissions, job-related illnesses or injuries to employees, and health care claims on behalf of students, employees, and their dependents. The university manages these risks through a combination of risk retention and commercial insurance, including coverage from internally maintained funds, as well as from a wholly-owned captive insurance company, Old Crescent Insurance Company (OCIC). The university is self-funded for damage to buildings INDIANA UNIVERSITY Financial Report

69 Notes to the Financial Statements continued occurrence with an additional $400,000 per occurrence covered by OCIC, with commercial excess property coverage above this amount. The university is self-funded for comprehensive general liability and rence with an additional $900,000 per occurrence covered by OCIC and with supplementary commercial liability umbrella policies. The university has a malpractice and professional liability policy in the amount of $400,000 for each claim and $1,200,000 annually in aggregate provided by OCIC. The uni- Workers Compensation claim and $125,000 in the aggregate for all claims in excess of $850,000 for each claim. Workers Compensation claims above these amounts are covered by commercial insurance and are subject to statutory limits. The university liability claims with an additional $1,000,000 in coverage through commercial insurances. The amount of settlements has not exceeded insurance The university has three health care plans for fulltime appointed employees, one of which is also available to retirees not eligible for Medicare. All of the employee plans are self-funded. The university records a liability for incurred but unpaid claims for university-sponsored, self-funded health care plans. This liability is estimated to be no more than 12.5% and totals $25,150,000 and $29,866,000 at June 30, 2017 and 2016, respectively. In addition, a potential recorded at June 30, 2017 and Changes in the balances of accrued insurance liabilities were as follows: (dollar amounts presented in thousands) Fiscal Beginning Claims Claims Ending Year Balance Incurred Paid Balance 2017 $ 29,866 $ 205,733 $ 210,449 $ 25, , , ,359 29,866 Separate funds have been established to account for the liability of incurred but unpaid health care claims, as well as any unusual catastrophic claims university are charged fees based on estimates of the amounts necessary to pay health care coverage costs, including premiums and claims. The university also provides health care plans for international students, graduate assistants, fellowship recipients, and medical residents. These plans consist of fully insured and self-funded plans, along with a stop/loss provision. The university has recorded a liability for incurred but unpaid claims for university-sponsored, self-funded health care plans in the amount of $1,656,000 and $2,614,000 at June 30, 2017 and 2016, respectively. These plans are funded by direct charges to the associated schools and/or departments. Note 12 Retirement Plans The university provided retirement plan coverage to 19,220 and 18,929 active employees as of June 30, 2017 and 2016, respectively, in addition to contributing to the Federal Insurance Contributions Act (FICA) as required by law. RETIREMENT AND SAVINGS PLAN All support and service employees with at least a 50% full-time equivalent (FTE) appointment and temporary with retirement employees scheduled to work at least 1,000 hours or more in a calendar year hired on or after July 1, 2013, participate in contribution plan under IRC 401(a). The university ended June 30, 2016, to TIAA-CREF for the plan. year ended June 30, 2017, and $444,000 during ments for the plan. Under this plan, 1,995 and 1,759 employees directed university contributions to TIAA-CREF as of June 30, 2017 and 2016, respectively. In addition, 424 and 317 directed university contributions to Fidelity Investments as of June 30, 2017 and 2016, respectively. INDIANA UNIVERSITY Financial Report

70 Notes to the Financial Statements continued ACADEMIC AND PROFESSIONAL STAFF EMPLOYEES with at least 50% FTE are covered by the IU Retire- IRC 403(b). The university contributed $59,540,000 to TIAA-CREF for the IU Retirement Plan. The uni- year ended June 30, 2016, to Fidelity Investments for the IU Retirement Plan. Under this plan, 7,137 and 7,194 employees directed university contributions to TIAA-CREF as of June 30, 2017 and 2016, respectively. In addition, 7,265 and 6,786 employees directed university contributions to Fidelity Investments as of June 30, 2017 and 2016, respectively. In addition to the above, the university provides were in positions Grade 16 and above on or before June 30, There were 856 and 901 active employees on June 30, 2017 and 2016, respectively, covered by the IU Supplemental Early Retirement compliance with IRC 401(a), with participant accounts at TIAA-CREF and Fidelity Investments. The university contributed $2,277,000 and June 30, 2017 and 2016, respectively. The same class of employees covered by the IU Retirement Plan 15% Level of Contributions on or before July 14, 1988, is covered by the IU 18/20 Retirement Plan, a combination of IRC Section 457(f) and Section 403(b) provisions. The IU 18/20 Retirement Plan allows this group of employees to retire as early as age 64, provided the individual has at least 18 years of participation in the IU Retirement Plan and at least 20 years of continuous university service. university made total payments of $24,630,000 to 250 individuals receiving IU 18/20 Retirement 30, 2016, the university made total payments of $27,507,000 to 285 individuals receiving IU 18/20 Retirement Plan payments. IU REPLACEMENT RETIREMENT PLAN FUNDING POLICY AND ANNUAL PENSION COST The university has established an early retirement plan for eligible employees to accommodate IRS requirements and as authorized by the trustees. This plan is called the IU Replacement Retirement Plan. the participants lifetime. Trust and recordkeeping activities are outsourced to the TIAA-CREF Trust Company. There were 78 and 79 employees eligible to participate as of June 30, 2017 and 2016, respectively. University contributions related to this plan ended June 30, 2017 and 2016, respectively, with no employee contributions. These amounts represent 100% of the funding policy contribution. As of June 30, 2017 and 2016, the net pension liability was $6,656,000 and $4,829,000, respectively. INDIANA PUBLIC EMPLOYEES RETIREMENT FUND The university contributes to the Indiana Public provision. Indiana Public Retirement System (INPRS) administers the cost-sharing, multiple-employer public employee retirement plans, which provide Support, technical, and service employees with at least a 50% FTE appointment hired prior to July 1, 2013, participate in the PERF plan. There were 3,280 and 3,715 active university employees covered by this retirement plan as of June 30, 2017 and 2016, respectively. State statutes authorize the university to contribute to the plan and govern most requirements of the system. The PERF retirement savings account, both of which are funded by employer contributions. Contributions to PERF are determined by INPRS Board of Trustees in accordance with IC and are based on actuarial investigation and valuation. Per IC , key elements of the pension formula include years of PERF creditable service multiplied by average annual compensation multiplied by 1.1%, resulting in an INDIANA UNIVERSITY Financial Report

71 Notes to the Financial Statements continued for members in pay status are not guaranteed by statute, but may be granted by the Indiana General Assembly on an ad hoc basis. Refunds of payments. Participants must have at least ten years of PERF creditable service to have a vested right to consists of contributions set by state statute at 3.0% of compensation plus the earnings credited to members accounts. Participants are 100% vested from inception in the annuity savings account. The university has elected to make the contributions to the annuity savings account on behalf of the members. supplementary information for the plan as a whole using the accrual basis of accounting in conformity with Generally Accepted Accounting Principles (GAAP). INPRS applies all applicable GASB pronouncements in accounting and reporting for its operations. Investments of the pension plan are valued as follows: Pooled and non-pooled investments are reported at fair value. Short-term investments are reported at cost. Fixed income and equity securities are valued based on published market prices, quotations from national security exchanges, or using modeling techniques that approximate a fair value for securities that are not traded on a national exchange. Alternative investments are valued based on quoted market prices or using estimates of fair value in the absence of readily determinable public market values. Derivative instruments are marked to market daily. This report may be obtained by writing the Indiana Public Retirement System, One North Capitol, Suite 001, Indianapolis, IN 46204; by calling ; or by reviewing the Annual Report online at Required and actual contributions made by the university totaled $18,802,000 and $19,712,000 for tively. This represented an 11.2% university pension 2017 and 2016, and a 3.0% university contribution for the annuity savings account provisions each year. PENSION LIABILITIES, PENSION EXPENSE, AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS Indiana Public Employees Retirement Fund. At June 30, 2017, the university reported a liability of $95,689,000 for its proportionate share of the net pension liability, as compared to $98,279,000 for the year ended June 30, The June 30, 2017, net pension liability of $95,689,000 at the measurement date was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2015, which used update procedures to roll forward the estimated liability to June 30, The university s proportion of the net pension liability was based on wages reported by the university relative to the collective wages of the plan. This basis measures the proportionate relationship of an employer to all employers and is consistent with the manner in which contributions to the pension plan are determined. At June 30, 2016, the university s proportion was 2.11%, a decrease of 1.19 percentage points from its proportion measured as of June 30, Indiana Code was amended concerning pensions. The legislation imposed a requirement on employers that stopped enrolling new employees in the fund to make a payment in an amount necessary to fund the employer s share of the unfunded liability PERF covered employees. At June 30, 2016, the university s net pension liability of $134,565,000 at the measurement date was reduced by $36,286,000 to Indiana Code A payment of $3,630, , reducing accounts payable. Pension expense of the university as of June 30, 2017 and 2016, was $12,913,000 and $17,689,000, respectively. INDIANA UNIVERSITY Financial Report

72 Notes to the Financial Statements continued At June 30, 2017, the university reported deferred resources related to pensions from the following sources: (dollar amounts presented in thousands) PERF Deferred Deferred Resources Resources expected and actual experience $ 2,144 $ 177 Changes of assumptions 4,222 projected and actual earnings on pension plan investments 15,662 Changes in proportion university contributions and proportionate share of contributions 27,564 38,043 University contributions subsequent to the measurement date 14,705 $14,705,000 related to pensions resulting from university contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, At June 30, 2016, the university reported deferred resources related to pensions from the following sources: (dollar amounts presented in thousands) PERF Deferred Deferred Resources Resources expected and actual experience $ 5,776 $ 278 Changes of assumptions 11,375 projected and actual earnings on pension plan investments 10,034 Changes in proportion university contributions and proportionate share of contributions ,465 University contributions subsequent to the measurement date 15,545 Total $ 43,293 $ 19,743 to pensions will be recognized in pension expense as follows: (dollar amounts presented in thousands) Fiscal Year Ended June 30, 2017 PERF 2017 $ (461) 2018 (2,158) 2019 (6,206) 2020 (2,547) 2021 Thereafter INDIANA UNIVERSITY Financial Report

73 Notes to the Financial Statements continued The total pension liability as of June 30, 2016, and June 30, 2015, based on the results of actuarial valuation dates of June 30, 2015, and June 30, 2014, and rolled forward, respectively, were determined using the following actuarial assumptions, which were applied to all periods included in the measurement: PERF Measurement Date as of June 30, 2016 Measurement Date as of June 30, 2015 Cost of living 1.0% 1.0% Future salary increases 0.25% to 2.0% 0.25% to 2.0% Investment rate of return 6.75%, net of pension plan 6.75%, net of pension plan investment expense investment expense Mortality rates Based on RP-2014 (with Based on RP-2014 (with MP-2014 improvement removed) MP-2014 improvement removed) Total Data Set Mortality Tables Total Data Set Mortality Tables The actuarial assumptions used in the valuations of June 30, 2016, were adopted by the Indiana Public Retire- period from July 1, 2010, through June 30, The valuations of June 30, 2016, incorporate member census used to roll forward valuation results over one year. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension produce the long-term expected rate of return by weighting the expected future real rates of return by the target real rates of return for each major asset class are summarized in the following table: PERF Measurement Date as of June 30, 2016 Measurement Date as of June 30, 2015 Target Long-Term Expected Target Long-Term Expected Allocation Real Rate of Return Allocation Real Rate of Return Public equity 22.0% 5.7% 22.5% 5.3% Private equity 10.0% 6.2% 10.0% 5.6% Fixed income Fixed income Commodities 8.0% 2.0% 8.0% 2.0% Real estate 7.0% 2.7% 7.5% 3.0% Absolute return 10.0% 4.0% 10.0% 3.9% Risk parity 12.0% 5.0% 10.0% 5.0% Total 100.0% 100.0% ¹ Includes cash & cash equivalents INDIANA UNIVERSITY Financial Report

74 Notes to the Financial Statements continued The discount rate used to measure the total pension liability was 6.75% for PERF at June 30, butions will be made at the current contribution rate and that contributions from participating employers will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan s active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments The following table presents the university s proportionate share of the PERF net pension liability using the discount rate of 6.75% for both years, as well as what the university s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate: (dollar amounts presented in thousands) PERF 1% Decrease Current Discount 1% Increase Sensitivity of Net Pension Liability June 30, 2017 $ 137,432 $ 95,689 $ 60,994 June 30, , ,565 81,492 PAYABLE TO THE PENSION PLAN The university reported a payable of $579,000 at June 30, 2017, and $1,339,000 at June 30, 2016, for the outstanding amount of contributions to the pension plans required for the year ended June 30, 2017 and 2016, respectively. PLAN DESCRIPTION The university provides certain postemployment plan (the Plan ) under the requirements for (OPEB) required by GASB Statement No. 45, Accounting and Financial Reporting by Employers who meet the following eligibility requirements: 18 years of participation in the IU Retirement Plan 15% level, at least 20 years of continuous full-time university service, and at least 64 years of age. This group of employees is eligible to receive monthly payments based on a hypothetical monthly annuity amount at age 70, up to the amount of terminal base salary, calculated as the average budgeted base preceding retirement. The 18/20 Plan was adopted by the Trustees of Indiana University ( trustees ). The university provides medical care coverage to individuals with retiree status and their eligible dependents. The cost of the coverage is borne fully by the individual. However, retiree medical care coverage is implicitly more expensive than active-employee coverage, which creates an implicit rate subsidy. The university provides retiree life nated employees with retiree status. The health and life insurance plans have been established and may be amended under the authority of the trustees. INDIANA UNIVERSITY Financial Report

75 Notes to the Financial Statements continued to early retirement incentive plans, approved by health reimbursement account. FUNDING POLICY The contribution requirements of plan members and the university are established and may be amended by the trustees. The university contribution to the 18/20 Plan and retiree life insurance is based on members do not make contributions. The medical plans are self-funded and each plan s premiums are updated annually based on actual claims. Retirees June 30, 2017 and 2016, respectively. The university contributed $40,370,000 and $48,546,000 to the June 30, 2017 and 2016, respectively. ANNUAL OPEB COST AND NET OPEB OBLIGATION The university s annual OPEB cost (expense) is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period The following table shows the university s annual OPEB cost for the year, the amount actually contributed to the plan, and the university s net OPEB obligation as provided by the actuarial results for respectively: (dollar amounts presented in thousands) Fiscal Year Ended June 30, 2017 June 30, 2016 Annual OPEB cost $ 41,109 $ 51,514 Less employer contributions (40,370) (48,546) Increase in OPEB obligation 739 2,968 Net OPEB obligation, beginning of year 36,565 33,597 FUNDED STATUS AND FUNDING PROGRESS The funding progress of the plan as of the most recent and preceding valuation date are as follows: (dollar amounts presented in thousands) UAAL as Actuarial Unfunded Percentage Actuarial Value Actuarial Accrued Actuarial Accrued Funded Covered of Covered Valuation of Assets Liability (AAL) Liability (UAAL) Ratio Payroll Payroll Date (a) (b) (b) - (a) (a/b) (c) ((b-a) / c) July 1, 2016 $ 244,371 $ 244, % $ 1,169, % July 1, , , % 1,135, % INDIANA UNIVERSITY Financial Report

76 Notes to the Financial Statements continued Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the university are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for Cindy s Song, sculpture in front of East Studio Building, Jacobs School of Music, Bloomington ACTUARIAL METHODS AND ASSUMPTIONS purposes are based on the substantive plan (the Plan as understood by the university and plan members) time of each valuation and the historical pattern of plan members to that point. The actuarial methods and assumptions used include techniques that are in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The projected unit credit cost method was used in the actuarial valuation of June 30, The actuarial assumptions include a 4.5% investment rate of return, which is a blended rate of (1) the expected long-term investment returns on plan assets and (2) the university s investments which is calculated based on the funded level of the Plan at June 30, 2017; and an annual healthcare cost trend rate that ranges from 8.5% in The Unfunded Actuarial Accrued Liability is being amortized over 25 years using level dollar amounts on an open group basis. Note 14 Related Organization Riley Children s Foundation of which a majority of the board of directors is appointed by, or serve by virtue of position with, Indiana University. Riley Children s Foundation net assets were $359,741,000 and $337,715,000 at June 30, 2017 and 2016, respectively. Riley Children s Foundation net assets are the university. INDIANA UNIVERSITY Financial Report

77 Notes to the Financial Statements continued Note 15 Functional Expenses Fiscal year ended June 30, 2017 (dollar amounts presented in thousands) Scholarships Functional Compensation Supplies & & Instruction $ 969,262 $ 708 $ 123,881 $ 14,721 $ $ 22,795 $ 1,131,367 Research 159, ,984 2,378 6, ,575 Public service 75, ,265 2,314 4, ,909 Academic support 323, ,043 2,378 8, ,187 Student services 86, ,202 1,658 3, ,839 Institutional support 86, , , ,199 Physical plant 94,183 71,311 68, ,071 Scholarships & fellowships 13,613 1, , ,646 Auxiliary enterprises 200,473 3,604 70,030 5,950 11, ,957 Depreciation 155, ,553 Total operating Fiscal year ended June 30, 2016 (dollar amounts presented in thousands) Scholarships Functional Compensation Supplies & & Instruction $ 941,720 $ 583 $ 118,239 $ 12,460 $ $ 20,968 $ 1,093,970 Research 159, ,295 2,672 5, ,012 Public service 71, ,170 2,542 3, ,645 Academic support 315, ,451 3,032 8, ,298 Student services 81, ,651 2,729 2, ,936 Institutional support 87, , , ,028 Physical plant 97,583 69,373 66, ,443 Scholarships & fellowships 12,522 1, , ,882 Auxiliary enterprises 181,411 2,939 73,025 6,091 11, ,703 Depreciation 150, ,707 Total operating The university had outstanding commitments for capital construction projects of $165,843,000 and $153,195,000 at June 30, 2017 and 2016, respectively. INDIANA UNIVERSITY Financial Report

78 52

79 53

80 54

81 55

82 56

83 57

84 58

85 59

86 60

87 61

88 Required Supplementary Information Schedule of the University s Proportionate Share of the Net Pension Liability for the Indiana Public Employees Retirement Fund (last 10 years 1 ): (dollar amounts presented in thousands) Measurement Measurement Measurement Date as of Date as of Date as of June 30, 2016 June 30, 2015 June 30, 2014 University s proportion of the net pension liability 2.11% 3.30% 3.85% University s proportionate share of the net pension liability $ 95,689 $134,565 $101,229 University s covered-employee payroll $101,047 $158,252 $188,067 University s proportionate share of the net pension liability as a percentage of its covered-employee payroll 94.70% 85.03% 53.82% total pension liability 75.30% 77.30% 84.30% Schedule of the University s Contributions for the Indiana Public Employees Retirement Fund (last 10 years 1 ): (dollar amounts presented in thousands) Fiscal Year 2017 Fiscal Year 2016 Fiscal Year 2015 Contractually required contribution $ 18,030 $ 19,769 $ 21,339 Contributions in relations to the contractually required contribution $ (18,030) $ (19,769) $ (21,339) University s covered-employee payroll $129,027 $139,962 $157,743 Contributions as a percentage of covered-employee payroll 13.97% 14.12% 13.53% None None 1 (dollar amounts presented in thousands) Actuarial UAAL as Actuarial Value Actuarial Accrued Unfunded AAL Funded Covered Percentage Valuation of Assets Liability (AAL) (UAAL) Ratio Payroll of Covered Payroll Date (a) (b) (b - a) (a/b) (c) ((b-a) / c) July 1, 2016* $ 244,371 $ 244, % $ 1,169, % July 1, , , % 1,135, % July 1, , , % 1,073, % becoming retired or after their COBRA eligibility ends. INDIANA UNIVERSITY Financial Report

89 The Trustees of Indiana University James T. Morris Chair, Board of Trustees, Marion County MaryEllen Kiley Bishop Vice Chair, Hamilton County W. Quinn Buckner Member, Monroe County Philip N. Eskew Jr. Member, Kosciusko County Michael J. Mirro Member, Allen County Andrew F. Mohr Member, Marion County Patrick A. Shoulders Member, Vanderburgh County Melanie S. Walker Member, Monroe County Anna M. Williams Member, Monroe County (Student Trustee) OFFICERS OF THE BOARD OF TRUSTEES Deborah A. Lemon Secretary Jacqueline A. Simmons Assistant Secretary Donald S. Lukes Treasurer John A. Sejdinaj Assistant Treasurer THE PRESIDENTS AND VICE PRESIDENTS Michael A. McRobbie President of the University Adam W. Herbert President Emeritus of the University Thomas Ehrlich President Emeritus of the University Kenneth R. R. Gros Louis University Chancellor Emeritus Assembly Hall, Bloomington INDIANA UNIVERSITY Financial Report

90 continued THE PRESIDENTS AND VICE PRESIDENTS continued John S. Applegate Executive Vice President for University Nasser H. Paydar Executive Vice President and Chancellor, Indiana University-Purdue University Indianapolis Lauren K. Robel Executive Vice President and Provost, IU Bloomington Fred H. Cate Vice President for Research G. Frederick Glass Vice President and Director of Intercollegiate Athletics Jay L. Hess Vice President for University Clinical IU School of Medicine Thomas A. Morrison Vice President for Capital Planning and Facilities Michael M. Sample Vice President for Government Relations John A. Sejdinaj Jacqueline A. Simmons Vice President and General Counsel William B. Stephan Vice President for Engagement Bradley C. Wheeler Vice President for Information James C. Wimbush Vice President for Diversity, Equity, and David Zaret THE CHANCELLORS Terry L. Allison Chancellor, Indiana University South Bend Vicky L. Carwein Chancellor, Indiana University-Purdue University Fort Wayne Kathryn Cruz-Uribe Chancellor, Indiana University East (Richmond) William J. Lowe Chancellor, Indiana University Northwest (Gary) Susan Sciame-Giesecke Chancellor, Indiana University Kokomo Ray Wallace Chancellor, Indiana University Southeast (New Albany) OTHER OFFICERS AND SENIOR LEADERS Karen H. Adams J Thomas Forbes Executive Director and CEO, IU Alumni Association Donald S. Lukes Treasurer, Indiana University Daniel C. Smith President and CEO, IU Foundation INDIANA UNIVERSITY Financial Report

91 Additional Information Additional copies of this report may be obtained from: Bryan Hall S. Indiana Avenue Indiana University Bloomington, IN reports.html For additional information: General Information Government Relations Bryan Hall S. Indiana Avenue Bloomington, IN Financial Reporting Associate Vice President and University Controller Financial Management Services Poplars E. 7th Street Indiana University Bloomington, IN Admissions Vice Provost for Enrollment Management 300 N. Jordan Ave. Indiana University Bloomington, IN Gifts Indiana University Foundation Showalter House P.O. Box 500 Bloomington, IN Grants Vice President for Research Bryan Hall S. Indiana Avenue Bloomington, IN Athletics Athletics Media Relations Simon Skjodt Assembly Hall 1001 E. 17th Street Indiana University Bloomington, IN Alumni Alumni Association Virgil T. DeVault Alumni Center 1000 E. 17th Street Indiana University Bloomington, IN INDIANA UNIVERSITY Financial Report

92 IU BLOOMINGTON IU EAST IUPUI INDIANAPOLIS IU KOKOMO IU NORTHWEST IU SOUTH BEND IU SOUTHEAST

Taxable Student Fee Bonds Series V-2

Taxable Student Fee Bonds Series V-2 New and Refunding Issue Book-Entry-Only Ratings: Moody s: Aaa ; S&P: AA+ See RATINGS In the opinion of Ice Miller LLP, Indianapolis, Indiana, and Coleman Stevenson & Montel, LLP, Indianapolis, Indiana,

More information

consisting of: $7,800,000 * TAXABLE ENTERPRISE REVENUE REFUNDING BONDS, SERIES 2011B $1,855,000 * ENTERPRISE REVENUE REFUNDING BONDS, SERIES 2011C

consisting of: $7,800,000 * TAXABLE ENTERPRISE REVENUE REFUNDING BONDS, SERIES 2011B $1,855,000 * ENTERPRISE REVENUE REFUNDING BONDS, SERIES 2011C This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the

More information

City Securities Corporation

City Securities Corporation NEW ISSUE--BOOK-ENTRY ONLY RATINGS: Moody s: Aaa Standard & Poor s: AA+ See RATINGS herein. In the opinion of Ice Miller LLP, Bond Counsel, conditioned on continuing compliance with the Tax Covenants (as

More information

$39,110,000 * BOARD OF TRUSTEES FOR COLORADO MESA UNIVERSITY ENTERPRISE REVENUE AND REVENUE REFUNDING BONDS SERIES 2013

$39,110,000 * BOARD OF TRUSTEES FOR COLORADO MESA UNIVERSITY ENTERPRISE REVENUE AND REVENUE REFUNDING BONDS SERIES 2013 This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the

More information

$250,000,000. Taxable Bonds Series $250,000, % Bonds due November 15, 2045

$250,000,000. Taxable Bonds Series $250,000, % Bonds due November 15, 2045 NEW-ISSUE BOOK-ENTRY ONLY Ratings: Standard & Poor s: AAMoody s: Aa3 Fitch: AA(See RATINGS herein) $250,000,000 Allina Health System Taxable Bonds Series 2015 $250,000,000 4.805% Bonds due November 15,

More information

$93,070,000. Indiana University Consolidated Revenue Bonds, Series 2016A

$93,070,000. Indiana University Consolidated Revenue Bonds, Series 2016A NEW ISSUE BOOK-ENTRY-ONLY RATINGS: Moody s: Aaa ; S&P: AAA See RATINGS In the opinion of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, under existing laws, regulations, rulings and judicial decisions,

More information

NEW ISSUE--BOOK-ENTRY ONLY

NEW ISSUE--BOOK-ENTRY ONLY NEW ISSUE--BOOK-ENTRY ONLY RATINGS: Moody s: Aaa S&P Global Ratings: AAA See RATINGS herein. In the opinion of Ice Miller LLP, Bond Counsel, conditioned on continuing compliance with the Tax Covenants

More information

Each Series of Bonds is secured by a pledge of the full faith, credit, and taxing power of the State of South Carolina.

Each Series of Bonds is secured by a pledge of the full faith, credit, and taxing power of the State of South Carolina. NEW ISSUE BOOK-ENTRY-ONLY Ratings: Fitch Ratings: AAA Moody s Investors Service, Inc.: Aaa Standard & Poor s Credit Market Services: AA+ In the opinion of Parker Poe Adams & Bernstein LLP, Special Tax

More information

$71,710,000 Indiana University Student Fee Bonds Series X

$71,710,000 Indiana University Student Fee Bonds Series X New and Refunding Issue Book-Entry-Only Ratings: Moody s: Aaa ; S&P: AAA See RATINGS In the opinion of Ice Miller LLP, Indianapolis, Indiana, and Coleman Stevenson, LLP, Indianapolis, Indiana, Co-Bond

More information

PRELIMINARY OFFICIAL STATEMENT DATED, 2017 $ LOS ANGELES COUNTY SCHOOLS POOLED FINANCING PROGRAM POOLED TRAN PARTICIPATION CERTIFICATES

PRELIMINARY OFFICIAL STATEMENT DATED, 2017 $ LOS ANGELES COUNTY SCHOOLS POOLED FINANCING PROGRAM POOLED TRAN PARTICIPATION CERTIFICATES PRELIMINARY OFFICIAL STATEMENT DATED, 2017 NEW ISSUES FULL BOOK-ENTRY-ONLY RATINGS: Series A-1: Standard & Poor s: Series A-2: Standard & Poor s: Series A-3: Standard & Poor s: (See RATINGS herein.) [In

More information

$53,360,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK PRATT INSTITUTE REVENUE BONDS, SERIES 2016

$53,360,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK PRATT INSTITUTE REVENUE BONDS, SERIES 2016 NEW ISSUE Moody s: A3 (See Ratings herein) Dated: Date of Delivery $53,360,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK PRATT INSTITUTE REVENUE BONDS, SERIES 2016 Due: July 1, as shown below Payment

More information

Polk County, Iowa $12,195,000* General Obligation Refunding Bonds, Series 2018A

Polk County, Iowa $12,195,000* General Obligation Refunding Bonds, Series 2018A Polk County, Iowa $12,195,000* General Obligation Refunding Bonds, Series 2018A (Book Entry Only) (PARITY Bidding Available) DATE: Monday, April 23, 2018 TIME: 1:00 P.M. PLACE: Office of the Board of Supervisors,

More information

VIRGINIA COLLEGE BUILDING AUTHORITY

VIRGINIA COLLEGE BUILDING AUTHORITY NEW ISSUE BOOK ENTRY ONLY Rating: S&P: A (See RATING herein) Assuming compliance with certain covenants and subject to the qualifications described under TAX MATTERS herein, in the opinion of Bond Counsel,

More information

PRELIMINARY LIMITED OFFERING MEMORANDUM DATED NOVEMBER 1, 2016

PRELIMINARY LIMITED OFFERING MEMORANDUM DATED NOVEMBER 1, 2016 This Preliminary Limited Offering Memorandum and the information contained herein are subject to change, amendment and completion without notice. Under no circumstances shall this Preliminary Limited Offering

More information

Moody s: Applied For S&P: Applied For See Ratings herein.

Moody s: Applied For S&P: Applied For See Ratings herein. In the opinion of Kutak Rock LLP, Bond Counsel, under existing laws, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and continuing compliance with certain

More information

THE AUTHORITY HAS NO POWER TO LEVY OR COLLECT TAXES.

THE AUTHORITY HAS NO POWER TO LEVY OR COLLECT TAXES. New Issue Book-Entry-Only In the opinion of Gibbons P.C., Bond Counsel to the Authority, under existing law, interest on the Refunding Bonds and net gains from the sale of the Refunding Bonds are exempt

More information

Freddie Mac. (See RATINGS herein)

Freddie Mac. (See RATINGS herein) NEW ISSUE-BOOK-ENTRY ONLY RATINGS (S&P): AAA/A-1+ (See RATINGS herein) In the opinion of Jones Hall, A Professional Law Corporation, Bond Counsel, subject to certain qualifications and assumptions described

More information

STIFEL, NICOLAUS & COMPANY, INCORPORATED

STIFEL, NICOLAUS & COMPANY, INCORPORATED REOFFERING CIRCULAR NOT A NEW ISSUE BOOK-ENTRY ONLY On the date of issuance of the Bonds, Balch & Bingham LLP ( Bond Counsel ) delivered its opinion with respect to the Bonds described below to the effect

More information

EXISTING ISSUES REOFFERED. $127,785,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK CORNELL UNIVERSITY REVENUE BONDS, SERIES 2008 Consisting of:

EXISTING ISSUES REOFFERED. $127,785,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK CORNELL UNIVERSITY REVENUE BONDS, SERIES 2008 Consisting of: EXISTING ISSUES REOFFERED Moody s: Aa1 Standard & Poor s: AA (See Ratings herein) $127,785,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK CORNELL UNIVERSITY REVENUE BONDS, SERIES 2008 Consisting of:

More information

The date of this Official Statement is December 1, 2015

The date of this Official Statement is December 1, 2015 NEW ISSUE-BOOK ENTRY ONLY RATING: Moody s: MIG-2 See RATINGS herein) In the opinion of Bond Counsel, under existing law and assuming continuous compliance with the applicable provisions of the Internal

More information

City of Indianapolis, Indiana $20,500,000 Multifamily Housing Revenue Bonds (GMF-Berkley Common Apartments Project) Senior Series 2010A

City of Indianapolis, Indiana $20,500,000 Multifamily Housing Revenue Bonds (GMF-Berkley Common Apartments Project) Senior Series 2010A NEW ISSUE - Book-Entry Only RATING: Series A "A+" Series B "BBB+" (S&P) SEE 'RATINGS" herein In the opinion of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, under federal statutes, decisions, regulations

More information

$100,000,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK THE ROCKEFELLER UNIVERSITY REVENUE BONDS, SERIES 2009C

$100,000,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK THE ROCKEFELLER UNIVERSITY REVENUE BONDS, SERIES 2009C NEW ISSUE Moody s: Aa1 Standard & Poor s: AAA (See Ratings herein) $100,000,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK THE ROCKEFELLER UNIVERSITY REVENUE BONDS, SERIES 2009C Dated: Date of Delivery

More information

OFFERING MEMORANDUM Book-Entry Only Moody s Rating: P-1 S&P Rating: A-1+ UNIVERSITY OF WASHINGTON General Revenue Notes (Commercial Paper)

OFFERING MEMORANDUM Book-Entry Only Moody s Rating: P-1 S&P Rating: A-1+ UNIVERSITY OF WASHINGTON General Revenue Notes (Commercial Paper) OFFERING MEMORANDUM Book-Entry Only Moody s Rating: P-1 S&P Rating: A-1+ UNIVERSITY OF WASHINGTON General Revenue Notes (Commercial Paper) Not to exceed $250,000,000 Series A (Tax-Exempt) Series B (Taxable)

More information

NORTH SPRINGS IMPROVEMENT DISTRICT (Broward County, Florida)

NORTH SPRINGS IMPROVEMENT DISTRICT (Broward County, Florida) NEW ISSUES - BOOK-ENTRY ONLY LIMITED OFFERING NOT RATED In the opinion of Bond Counsel, under existing statutes, regulations, rulings and court decisions and assuming compliance with the tax covenants

More information

THE BONDS ARE SECURED SOLELY AND EXCLUSIVELY BY THE TRUST ESTATE.

THE BONDS ARE SECURED SOLELY AND EXCLUSIVELY BY THE TRUST ESTATE. NEW ISSUE Book-Entry Only RATING: S&P A- See RATING herein. In the opinion of Hunton & Williams LLP, Bond Counsel, under current law and subject to conditions described herein under TAX MATTERS, interest

More information

$18,000,000 General Obligation Bond Anticipation Notes Dated: July 25, 2018 Due: July 24, 2019

$18,000,000 General Obligation Bond Anticipation Notes Dated: July 25, 2018 Due: July 24, 2019 This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to

More information

Florida Power & Light Company

Florida Power & Light Company NEW ISSUE BOOK-ENTRY ONLY In the opinion of King & Spalding LLP, Bond Counsel, under existing statutes, rulings and court decisions, and under applicable regulations, and assuming the accuracy of certain

More information

LAURENS COUNTY, GEORGIA

LAURENS COUNTY, GEORGIA NEW ISSUE (Book Entry Only) RATING: Moody s: A1 See MISCELLANEOUS Rating In the opinion of Bond Counsel, under existing laws, regulations and judicial decisions, and assuming continued compliance by the

More information

CITY OF GAINESVILLE, FLORIDA. Series C Notes

CITY OF GAINESVILLE, FLORIDA. Series C Notes COMMERCIAL PAPER OFFERING MEMORANDUM CITY OF GAINESVILLE, FLORIDA $85,000,000 UTILITIES SYSTEM COMMERCIAL PAPER NOTES, SERIES C $25,000,000 UTILITIES SYSTEM COMMERCIAL PAPER NOTES, SERIES D (Federally

More information

OFFICIAL STATEMENT $65,130,000 CUYAHOGA COMMUNITY COLLEGE DISTRICT, OHIO GENERAL RECEIPTS REFUNDING BONDS, SERIES E, 2016

OFFICIAL STATEMENT $65,130,000 CUYAHOGA COMMUNITY COLLEGE DISTRICT, OHIO GENERAL RECEIPTS REFUNDING BONDS, SERIES E, 2016 Ratings: Moody s: Aa2 Standard & Poor s: AA- NEW ISSUE In the opinion of Tucker Ellis LLP, Bond Counsel to the District, under existing law (1) assuming continuing compliance with certain covenants and

More information

$151,945,000 MONROE COUNTY INDUSTRIAL DEVELOPMENT CORPORATION TAX-EXEMPT REVENUE BONDS (THE ROCHESTER GENERAL HOSPITAL PROJECT), SERIES 2017

$151,945,000 MONROE COUNTY INDUSTRIAL DEVELOPMENT CORPORATION TAX-EXEMPT REVENUE BONDS (THE ROCHESTER GENERAL HOSPITAL PROJECT), SERIES 2017 NEW ISSUE Full Book-Entry Standard & Poor s A- (See Rating herein) In the opinion of Harris Beach PLLC, Bond Counsel to the Issuer, based on existing statutes, regulations, court decisions and administrative

More information

$3,825,000* SUMMIT AT FERN HILL COMMUNITY DEVELOPMENT DISTRICT

$3,825,000* SUMMIT AT FERN HILL COMMUNITY DEVELOPMENT DISTRICT This Preliminary Limited Offering Memorandum and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Limited Offering Memorandum constitute

More information

$20,635,000. Morgan Stanley

$20,635,000. Morgan Stanley NEW ISSUE - Book-Entry Only Expected Ratings: Fitch: Asf S&P: A(sf) See Ratings herein In the opinion of Kutak Rock LLP, Bond Counsel, under existing laws, regulations, rulings and judicial decisions,

More information

HILLSBOROUGH COUNTY, FLORIDA CAPITAL IMPROVEMENT PROGRAM COMMERCIAL PAPER NOTES SERIES A, SERIES B (AMT) AND SERIES C (TAXABLE)

HILLSBOROUGH COUNTY, FLORIDA CAPITAL IMPROVEMENT PROGRAM COMMERCIAL PAPER NOTES SERIES A, SERIES B (AMT) AND SERIES C (TAXABLE) OFFERING MEMORANDUM Citigroup Global Markets Inc. is the exclusive dealer for: HILLSBOROUGH COUNTY, FLORIDA CAPITAL IMPROVEMENT PROGRAM COMMERCIAL PAPER NOTES SERIES A, SERIES B (AMT) AND SERIES C (TAXABLE)

More information

$146,465,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK FORDHAM UNIVERSITY REVENUE BONDS, SERIES 2016A

$146,465,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK FORDHAM UNIVERSITY REVENUE BONDS, SERIES 2016A NEW ISSUE Moody s: A2 Standard & Poor s: A (See Ratings herein) $146,465,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK FORDHAM UNIVERSITY REVENUE BONDS, SERIES 2016A Dated: Date of Delivery Due: July

More information

NEW ISSUE - BOOK ENTRY ONLY Series 2011-A Bonds: Moody s: Aa2 (stable) Standard & Poor s: AA- (stable)

NEW ISSUE - BOOK ENTRY ONLY Series 2011-A Bonds: Moody s: Aa2 (stable) Standard & Poor s: AA- (stable) NEW ISSUE - BOOK ENTRY ONLY RATINGS: Series 2011-A Bonds: Moody s: Aa2 (stable) Standard & Poor s: AA- (stable) In the opinion of Bond Counsel, under existing law and assuming the accuracy of certain representations

More information

PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 30, 2018

PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 30, 2018 This Preliminary Official Statement and the information contained herein are subject to completion, amendment or other change without notice. These securities may not be sold nor may an offer to buy be

More information

STIFEL RBC CAPITAL MARKETS

STIFEL RBC CAPITAL MARKETS NEW ISSUES FULL BOOK-ENTRY-ONLY RATINGS: Series A-1: Standard & Poor s: SP-1+ Series A-2: Standard & Poor s: SP-1+ Series A-3: Standard & Poor s: SP-1+ Series A-4: Standard & Poor s: SP-2 (See RATINGS

More information

BANC OF AMERICA SECURITIES LLC

BANC OF AMERICA SECURITIES LLC NEW ISSUE - FULL BOOK ENTRY Rating: Fitch : AA-/F1+ (See RATINGS herein) In the opinion of Womble Carlyle Sandridge & Rice, PLLC, Bond Counsel, assuming continuing compliance by the Agency and the Borrower

More information

NEW ISSUE BOOK ENTRY ONLY. RATING: S&P: BBB Stable Outlook See: RATING herein

NEW ISSUE BOOK ENTRY ONLY. RATING: S&P: BBB Stable Outlook See: RATING herein NEW ISSUE BOOK ENTRY ONLY RATING: S&P: BBB Stable Outlook See: RATING herein In the opinion of Ballard Spahr LLP, Bond Counsel, interest on the Bonds is excludable from gross income for purposes of federal

More information

NEW ISSUE - BOOK-ENTRY ONLY

NEW ISSUE - BOOK-ENTRY ONLY NEW ISSUE - BOOK-ENTRY ONLY NOT RATED In the opinion of Squire, Sanders & Dempsey L.L.P., Bond Counsel, under existing law (i) assuming continuing compliance with certain covenants and the accuracy of

More information

George K. Baum & Company

George K. Baum & Company NEW ISSUE BOOK-ENTRY ONLY RATING: S&P: AA SERIES 2010A BANK QUALIFIED In the opinion of Bond Counsel, conditioned on continuing compliance with certain requirements of the Internal Revenue Code of 1986,

More information

Preliminary Official Statement Dated July 11, 2018

Preliminary Official Statement Dated July 11, 2018 This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to

More information

NEW ISSUE - BOOK-ENTRY ONLY NOT RATED LIMITED OFFERING

NEW ISSUE - BOOK-ENTRY ONLY NOT RATED LIMITED OFFERING NEW ISSUE - BOOK-ENTRY ONLY NOT RATED LIMITED OFFERING In the opinion of Greenspoon Marder, P.A., Bond Counsel to the Authority, assuming compliance by the Authority and the Borrower with certain tax covenants

More information

$32,275,000. FHA-Insured Mortgage Revenue Refunding Bonds (St. John s Meadows Project), Series 2007

$32,275,000. FHA-Insured Mortgage Revenue Refunding Bonds (St. John s Meadows Project), Series 2007 NEW ISSUE (see RATING herein) In the opinion of Trespasz & Marquardt LLP, Bond Counsel to the Authority, based on existing statutes, regulations, rulings and court decisions, interest on the Series 2007

More information

$40,350,000. Student Housing Revenue Bonds (USG Real Estate Foundation IV, LLC Project) Series 2016

$40,350,000. Student Housing Revenue Bonds (USG Real Estate Foundation IV, LLC Project) Series 2016 NEW ISSUE BOOK ENTRY ONLY Rating: Moody s: MIG 1 (See RATING herein) The delivery of the Bonds (as defined below) is subject to the opinion of Bond Counsel to the Issuer to the effect that, assuming compliance

More information

$51,775,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK GNMA COLLATERALIZED REVENUE BONDS (CABRINI OF WESTCHESTER PROJECT), SERIES 2006

$51,775,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK GNMA COLLATERALIZED REVENUE BONDS (CABRINI OF WESTCHESTER PROJECT), SERIES 2006 NEW ISSUE Standard & Poor s: AA See Rating herein $51,775,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK GNMA COLLATERALIZED REVENUE BONDS (CABRINI OF WESTCHESTER PROJECT), SERIES 2006 Dated: Date of

More information

$7,200,000,000 * STATE OF TEXAS TAX AND REVENUE ANTICIPATION NOTES SERIES 2018

$7,200,000,000 * STATE OF TEXAS TAX AND REVENUE ANTICIPATION NOTES SERIES 2018 This Preliminary Official Statement and the information contained herein are subject to completion or amendment without notice. These securities may not be sold nor may offers to buy be accepted prior

More information

NEW ISSUE Book-Entry Only RATING: A- S&P SEE RATING herein.

NEW ISSUE Book-Entry Only RATING: A- S&P SEE RATING herein. NEW ISSUE Book-Entry Only RATING: A- S&P SEE RATING herein. In the opinion of Jones Walker LLP, Bond Counsel to the Authority (as defined below), under existing law, including current statutes, regulations,

More information

OFFICIAL STATEMENT DATED MAY 12, 2016

OFFICIAL STATEMENT DATED MAY 12, 2016 OFFICIAL STATEMENT DATED MAY 12, 2016 NEW ISSUE BOOK ENTRY ONLY RATING: Standard & Poor s: BBB+ Stable Outlook See: RATING herein In the opinion of Ballard Spahr LLP, Bond Counsel, interest on the Bonds

More information

$11,415,000 Salt Lake County, Utah

$11,415,000 Salt Lake County, Utah New Issue Book-Entry Only Rating: S&P BBB See Rating Subject to compliance by the Issuer and the College with certain covenants, in the opinion of Chapman and Cutler LLP, Bond Counsel, under present law,

More information

$20,630,000. University of Illinois Auxiliary Facilities System Revenue Bonds, Series 2016B

$20,630,000. University of Illinois Auxiliary Facilities System Revenue Bonds, Series 2016B NEW ISSUE BOOK-ENTRY-ONLY (See Ratings, herein) Subject to compliance by The Board of Trustees of the University of Illinois (the Board ) with certain covenants, in the opinion of Bond Counsel, under present

More information

AMERITAS INVESTMENT CORP.

AMERITAS INVESTMENT CORP. NEW ISSUE BOOK-ENTRY ONLY OFFICIAL STATEMENT DATED JULY 24, 2013 NON-RATED BANK QUALIFIED In the opinion of Kutak Rock LLP, Bond Counsel, under existing laws, regulations, rulings and judicial decisions

More information

OFFERED ONLY TO QUALIFIED INSTITUTIONAL BUYERS $15,595,000 CITY OF COMPTON, CALIFORNIA TAX AND REVENUE ANTICIPATION NOTES

OFFERED ONLY TO QUALIFIED INSTITUTIONAL BUYERS $15,595,000 CITY OF COMPTON, CALIFORNIA TAX AND REVENUE ANTICIPATION NOTES OFFERED ONLY TO QUALIFIED INSTITUTIONAL BUYERS NEW ISSUE, BOOK-ENTRY ONLY NO RATING In the opinion of Note Counsel, subject to the limitations and conditions described herein, interest on the Notes (defined

More information

OFFICIAL STATEMENT DATED MAY 14, 2014

OFFICIAL STATEMENT DATED MAY 14, 2014 OFFICIAL STATEMENT DATED MAY 14, 2014 NEW ISSUE BOOK ENTRY ONLY RATING: Standard & Poor s: A Stable Outlook See: RATING herein In the opinion of Ballard Spahr LLP, Bond Counsel, interest on the Bonds is

More information

PRELIMINARY OFFICIAL STATEMENT DATED APRIL 5, 2018

PRELIMINARY OFFICIAL STATEMENT DATED APRIL 5, 2018 THIS PRELIMINARY OFFICIAL STATEMENT AND THE INFORMATION CONTAINED HEREIN ARE SUBJECT TO COMPLETION OR AMENDMENT IN A FINAL OFFICIAL STATEMENT. The 2018 Bonds may not be sold nor may offers to buy be accepted

More information

PRELIMINARY OFFICIAL STATEMENT DATED MAY 7, 2014

PRELIMINARY OFFICIAL STATEMENT DATED MAY 7, 2014 The information contained in this Preliminary Official Statement is subject to completion and amendment. The Series 2014A Bonds may not be sold nor may an offer to buy be accepted prior to the time the

More information

NEW ISSUE BOOK ENTRY ONLY. RATING: Standard & Poor s: BBB+ Negative Outlook See: RATING herein

NEW ISSUE BOOK ENTRY ONLY. RATING: Standard & Poor s: BBB+ Negative Outlook See: RATING herein NEW ISSUE BOOK ENTRY ONLY RATING: Standard & Poor s: BBB+ Negative Outlook See: RATING herein In the opinion of Ballard Spahr LLP, Bond Counsel, interest on the Bonds is excludable from gross income for

More information

$32,145,000 The Delaware Economic Development Authority Revenue Bonds (Delaware State University Project) Series 2012

$32,145,000 The Delaware Economic Development Authority Revenue Bonds (Delaware State University Project) Series 2012 NEW ISSUE - BOOK ENTRY ONLY $32,145,000 The Delaware Economic Development Authority Revenue Bonds (Delaware State University Project) Series 2012 Rating: S&P: A+ In the opinion of Ballard Spahr, LLP, Wilmington,

More information

$8,650,000 Township of Monroe Cumberland County, Pennsylvania General Obligation Bonds, Series of 2011

$8,650,000 Township of Monroe Cumberland County, Pennsylvania General Obligation Bonds, Series of 2011 NEW ISSUE BOOK-ENTRY ONLY RATINGS: S&P: A+ (Stable Outlook) Underlying AA+ (CreditWatch negative) Assured Guaranty Municipal Insured (See RATINGS herein) In the opinion of Bond Counsel, under existing

More information

MORGAN KEEGAN & COMPANY, INC.

MORGAN KEEGAN & COMPANY, INC. NEW ISSUE BOOK ENTRY ONLY RATING: S&P BBB+ In the opinion of Bond Counsel, under existing laws, regulations, rulings, and judicial decisions, assuming the accuracy of certain representations and continuing

More information

$283,580,000 WESTCHESTER COUNTY LOCAL DEVELOPMENT CORPORATION REVENUE BONDS, SERIES 2016 (WESTCHESTER MEDICAL CENTER OBLIGATED GROUP PROJECT)

$283,580,000 WESTCHESTER COUNTY LOCAL DEVELOPMENT CORPORATION REVENUE BONDS, SERIES 2016 (WESTCHESTER MEDICAL CENTER OBLIGATED GROUP PROJECT) NEW ISSUE Book-Entry Only RATINGS: Moody s: Baa2 S&P: BBB In the opinion of Winston & Strawn LLP, Bond Counsel, based on existing statutes, regulations, rulings, and court decisions, interest on the Series

More information

$48,780,000 COLORADO HOUSING AND FINANCE AUTHORITY

$48,780,000 COLORADO HOUSING AND FINANCE AUTHORITY NEW ISSUE - Book-Entry Only INTEREST ON THE 2003 SERIES A BONDS IS NOT EXCLUDED FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES. In the opinion of Sherman & Howard L.L.C., Bond Counsel, the 2003 Series

More information

WELLS FARGO SECURITIES

WELLS FARGO SECURITIES NEW ISSUE BOOK ENTRY ONLY STATE INTERCEPT RATING: Moody s: Aa2 UNDERLYING RATING: Moody s: A1 (See RATINGS herein.) In the opinion of Kutak Rock LLP, Bond Counsel, under existing laws, regulations, rulings

More information

$344,145,000* JEFFERSON COUNTY, ALABAMA Limited Obligation Refunding Warrants, Series 2017

$344,145,000* JEFFERSON COUNTY, ALABAMA Limited Obligation Refunding Warrants, Series 2017 SUPPLEMENT to PRELIMINARY OFFICIAL STATEMENT DATED JUNE 23, 2017 relating to $344,145,000* JEFFERSON COUNTY, ALABAMA Limited Obligation Refunding Warrants, Series 2017 This supplement (this Supplement

More information

The Depository Trust Company A subsidiary of The Depository Trust & Clearing Corporation

The Depository Trust Company A subsidiary of The Depository Trust & Clearing Corporation The Depository Trust Company A subsidiary of The Depository Trust & Clearing Corporation Book-Entry-Only Institutional Certificate of Deposit (Master Note and/or Global Certificates) Program Letter of

More information

NEW ISSUE Book-Entry Only RATING: S&P A- See RATING herein.

NEW ISSUE Book-Entry Only RATING: S&P A- See RATING herein. NEW ISSUE Book-Entry Only RATING: S&P A- See RATING herein. In the opinion of Peck, Shaffer & Williams LLP, Bond Counsel, based upon an analysis of existing laws, regulations, rulings and judicial decisions

More information

NEW ISSUE $103,215,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK THE ROCKEFELLER UNIVERSITY REVENUE BONDS, SERIES 2008A

NEW ISSUE $103,215,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK THE ROCKEFELLER UNIVERSITY REVENUE BONDS, SERIES 2008A NEW ISSUE $103,215,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK THE ROCKEFELLER UNIVERSITY REVENUE BONDS, SERIES 2008A Dated: Date of Delivery Due: July 1, 2039 Payment and Security: The Rockefeller

More information

New Issue - Book-Entry Only $525,000,000 * STATE OF NEW JERSEY GENERAL OBLIGATION BONDS. (Various Purposes)

New Issue - Book-Entry Only $525,000,000 * STATE OF NEW JERSEY GENERAL OBLIGATION BONDS. (Various Purposes) This is a Preliminary Official Statement and the information contained herein is subject to completion and amendment in a final Official Statement. Under no circumstances shall this Preliminary Official

More information

$31,760,000 Infrastructure and State Moral Obligation Revenue Bonds (Virginia Pooled Financing Program) Series 2015C.

$31,760,000 Infrastructure and State Moral Obligation Revenue Bonds (Virginia Pooled Financing Program) Series 2015C. NEW ISSUE/BOOK-ENTRY RATINGS: 2015C Infrastructure Revenue Bonds: Aaa (Moody's), AAA (S&P) 2015C Moral Obligation Bonds: Aa2 (Moody's), AA (S&P) (See "Ratings" herein) In the opinion of Bond Counsel, under

More information

$12,770,000 CITY OF CALUMET CITY Cook County, Illinois General Obligation Corporate Purpose Bonds, Series 2009A

$12,770,000 CITY OF CALUMET CITY Cook County, Illinois General Obligation Corporate Purpose Bonds, Series 2009A New Issue Book-Entry Only FINAL OFFICIAL STATEMENT Moody s Investors Service... Aa2 Standard & Poor s... AAA (Assured Guaranty Corp. Insured) (Moody s Underlying Rating... A3) (Standard & Poor s Underlying

More information

$127,910,000 PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY UPMC REVENUE BONDS, SERIES 2015B

$127,910,000 PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY UPMC REVENUE BONDS, SERIES 2015B NEW ISSUE BOOK ENTRY ONLY RATINGS: Moody s: Aa3 S&P: A+ Fitch: AA- (See RATINGS herein) In the opinion of Bond Counsel, under existing law and assuming continuing compliance by the Pennsylvania Economic

More information

HAWK S POINT COMMUNITY DEVELOPMENT DISTRICT (Hillsborough County, Florida) $7,120,000*

HAWK S POINT COMMUNITY DEVELOPMENT DISTRICT (Hillsborough County, Florida) $7,120,000* This Preliminary Limited Offering Memorandum and any information contained herein are subject to completion and amendment. Under no circumstances may this Preliminary Limited Offering Memorandum constitute

More information

AMERITAS INVESTMENT CORP.

AMERITAS INVESTMENT CORP. REFUNDING ISSUE--BOOK-ENTRY ONLY RATING: MOODY'S Aa2 BANK QUALIFIED Official Statement Dated November 20, 2012 In the opinion ofbond Counsel, under existing laws, regulations and court decisions and subject

More information

Citigroup as Remarketing Agent

Citigroup as Remarketing Agent EXISTING ISSUE REOFFERED BOOK-ENTRY-ONLY EXPECTED RATINGS Moody s: Aa1/VMIG 1; S&P: AA/A-1+ (see RATINGS herein.) On the date of original issuance and delivery of the Series 2002 Bonds, Bond Counsel delivered

More information

$9,630,000 BROCKTON HOUSING AUTHORITY (BROCKTON, MASSACHUSETTS) Capital Fund Housing Revenue Bonds, Series 2017

$9,630,000 BROCKTON HOUSING AUTHORITY (BROCKTON, MASSACHUSETTS) Capital Fund Housing Revenue Bonds, Series 2017 NEW ISSUE - BOOK ENTRY ONLY (See RATING herein) In the opinion of Harris Beach PLLC, Bond Counsel to the Authority, based on existing statutes, regulations, court decisions and administrative rulings,

More information

$9,750,000* WILKES COUNTY SCHOOL DISTRICT (GEORGIA) General Obligation Refunding Bonds, Series 2011

$9,750,000* WILKES COUNTY SCHOOL DISTRICT (GEORGIA) General Obligation Refunding Bonds, Series 2011 This Preliminary Official Statement and the information contained herein are subject to change, completion or amendment without notice. The Series 2011 Bonds may not be sold nor may offers to buy be accepted

More information

$338,925,000 JEFFERSON COUNTY, ALABAMA Limited Obligation Refunding Warrants, Series 2017

$338,925,000 JEFFERSON COUNTY, ALABAMA Limited Obligation Refunding Warrants, Series 2017 NEW ISSUE - BOOK- ENTRY ONLY OFFICIAL STATEMENT RATINGS: S&P: AA (stable outlook) Fitch: A (rating watch negative) (See RATINGS herein) In the opinion of Bond Counsel, under existing law, interest on the

More information

PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 10, 2018 $3,330,000 CITY OF AUBURN, INDIANA Waterworks Revenue Bonds of 2018

PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 10, 2018 $3,330,000 CITY OF AUBURN, INDIANA Waterworks Revenue Bonds of 2018 This Preliminary Official Statement and the information contained herein are subject to completion and amendment. The Bonds may not be sold nor may an offer to buy be accepted prior to the time the Official

More information

RBC Capital Markets. Bonds Dated: Date of Delivery Denomination: $5,000 Principal Due: as shown on the inside cover. Form: Book Entry Only

RBC Capital Markets. Bonds Dated: Date of Delivery Denomination: $5,000 Principal Due: as shown on the inside cover. Form: Book Entry Only NEW ISSUE BOOK ENTRY ONLY RATING: Moody s Aa3 In the opinion of Ballard Spahr LLP ("Special Tax Counsel"), interest on the Bonds is excludable from gross income for federal income tax purposes, assuming

More information

WATER DISTRICT NO. 1 OF JOHNSON COUNTY, KANSAS

WATER DISTRICT NO. 1 OF JOHNSON COUNTY, KANSAS This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the

More information

NASSAU HEALTH CARE CORPORATION

NASSAU HEALTH CARE CORPORATION OFFICIAL STATEMENT NEW ISSUE BOOK ENTRY ONLY In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel, based upon an analysis of existing laws, regulations, rulings, and court decisions, and

More information

1,440,000 CITY OF MYRTLE BEACH, SOUTH CAROLINA WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 2016

1,440,000 CITY OF MYRTLE BEACH, SOUTH CAROLINA WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 2016 NEW ISSUE; BOOK-ENTRY ONLY Ratings: Moody s: Aa3 Standard & Poor s: AA(See Ratings herein) In the opinion of Bond Counsel to the City, under existing statutes and court decisions and assuming continuing

More information

PRELIMINARY LIMITED OFFERING MEMORANDUM DATED JANUARY 3, 2018 NEW ISSUE - BOOK-ENTRY ONLY LIMITED OFFERING

PRELIMINARY LIMITED OFFERING MEMORANDUM DATED JANUARY 3, 2018 NEW ISSUE - BOOK-ENTRY ONLY LIMITED OFFERING This Preliminary Limited Offering Memorandum and the information contained herein are subject to completion or amendment without notice. These securities may not be sold nor may an offer to buy be accepted

More information

PRELIMINARY LIMITED OFFERING MEMORANDUM DATED AUGUST 18, 2016

PRELIMINARY LIMITED OFFERING MEMORANDUM DATED AUGUST 18, 2016 This Preliminary Limited Offering Memorandum and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Limited Offering Memorandum constitute

More information

$8,220,000 Albany-Dougherty Inner City Authority Revenue Refunding Bonds (Dougherty County, Georgia Public Purpose Project), Series 2010

$8,220,000 Albany-Dougherty Inner City Authority Revenue Refunding Bonds (Dougherty County, Georgia Public Purpose Project), Series 2010 NEW ISSUE (Book-Entry Only) RATINGS: Standard & Poor s: AA- See MISCELLANEOUS - Ratings herein. In the opinion of Bond Counsel, under current law and subject to conditions described in the Section herein

More information

$75,720,000 COLORADO HOUSING AND FINANCE AUTHORITY

$75,720,000 COLORADO HOUSING AND FINANCE AUTHORITY REVISED ON JULY 1, 2002 See "Part I RATINGS" herein CUSIP: 196479EQ8 In the opinion of Sherman & Howard L.L.C., Bond Counsel, assuming continuous compliance with certain covenants and representations described

More information

The Depository Trust Company A subsidiary of The Depository Trust & Clearing Corporation

The Depository Trust Company A subsidiary of The Depository Trust & Clearing Corporation The Depository Trust Company A subsidiary of The Depository Trust & Clearing Corporation Book-Entry-Only Municipal Variable-Rate Demand Obligations (VRDOs) in Commercial Paper (CP) Mode (VRDO/CP)/and VRDOs

More information

Town of Stonington, Connecticut $20,000,000 General Obligation Bonds, Issue of 2017

Town of Stonington, Connecticut $20,000,000 General Obligation Bonds, Issue of 2017 This Preliminary Official Statement and the information contained herein are subject to completion and amendment. These securities may not be sold nor may an offer to buy be accepted, prior to the time

More information

BOOK-ENTRY ONLY (See MISCELLANEOUS Ratings herein)

BOOK-ENTRY ONLY (See MISCELLANEOUS Ratings herein) NEW ISSUE Moody s: Aa2 BOOK-ENTRY ONLY (See MISCELLANEOUS Ratings herein) In the opinion of Bond Counsel, subject to the limitations and conditions described herein, (i) interest on the Series 2007 Bonds

More information

$4,800,000 VIRGINIA HOUSING DEVELOPMENT AUTHORITY Rental Housing Bonds 2016 Series A-Non-AMT

$4,800,000 VIRGINIA HOUSING DEVELOPMENT AUTHORITY Rental Housing Bonds 2016 Series A-Non-AMT Ratings: Moody s S&P Aa1 AA+ (See Ratings herein) In the opinion of Hawkins Delafield & Wood LLP, Bond Counsel to the Authority, under existing statutes and court decisions and assuming continuing compliance

More information

Town of Orange, Connecticut

Town of Orange, Connecticut Final Official Statement Dated July 9, 2014 NEW ISSUE: Book-Entry-Only RATINGS: Standard & Poor s Corporation AAA / SP-1+ In the opinion of Bond Counsel, based on existing statutes and court decisions

More information

$116,770,000 STATE OF NEW YORK MORTGAGE AGENCY HOMEOWNER MORTGAGE REVENUE BONDS

$116,770,000 STATE OF NEW YORK MORTGAGE AGENCY HOMEOWNER MORTGAGE REVENUE BONDS NEW ISSUES In the opinion of Hawkins Delafield & Wood LLP, Bond Counsel to the Agency, under existing statutes and court decisions and assuming continuing compliance with certain tax covenants described

More information

STANFORD UNIVERSITY Taxable Bonds Series 2012 $143,235, % Bonds due May 1, 2042 Issue price: %

STANFORD UNIVERSITY Taxable Bonds Series 2012 $143,235, % Bonds due May 1, 2042 Issue price: % NEW ISSUE BOOK-ENTRY ONLY Ratings: See "RATINGS" herein. STANFORD UNIVERSITY Taxable Bonds Series 2012 $143,235,000 4.013% Bonds due May 1, 2042 Issue price: 100.00% The Stanford University Taxable Bonds

More information

Moody s A2 Fitch A (See Ratings herein)

Moody s A2 Fitch A (See Ratings herein) NEW ISSUE FULL-BOOK ENTRY RATINGS: S&P A Moody s A2 Fitch A (See Ratings herein) In the opinion of Bond Counsel, assuming compliance by the Issuer with certain covenants, under existing statutes, regulations,

More information

Davenport & Company, LLC. See ("Rating" herein)

Davenport & Company, LLC. See (Rating herein) NEW ISSUE - BOOK ENTRY ONLY RATING: Fitch: BBB See ("Rating" herein) In the opinion of Christian & Barton, L.L.P., Bond Counsel, under existing law (i) assuming continuing compliance with certain covenants

More information

$24,700,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK CATHOLIC HEALTH SYSTEM OBLIGATED GROUP REVENUE BONDS, SERIES 2008

$24,700,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK CATHOLIC HEALTH SYSTEM OBLIGATED GROUP REVENUE BONDS, SERIES 2008 NEW ISSUE $24,700,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK CATHOLIC HEALTH SYSTEM OBLIGATED GROUP REVENUE BONDS, SERIES 2008 Dated: Date of Delivery Price: 100% Due: July 1 as shown on the inside

More information

SUPPLEMENT DATED JULY 14, 2011 TO THE OFFICIAL STATEMENT DATED JUNE 23, 2011 $15,000,000. Vermont Student Assistance Corporation

SUPPLEMENT DATED JULY 14, 2011 TO THE OFFICIAL STATEMENT DATED JUNE 23, 2011 $15,000,000. Vermont Student Assistance Corporation SUPPLEMENT DATED JULY 14, 2011 TO THE OFFICIAL STATEMENT DATED JUNE 23, 2011 $15,000,000 Vermont Student Assistance Corporation Education Loan Revenue Bonds Senior Series 2011A-1 (Tax-Exempt Fixed Rate

More information

PRELIMINARY OFFICIAL STATEMENT CITY OF WICHITA, KANSAS $26,090,000* $103,055,000* WATER AND SEWER UTILITY REVENUE BONDS

PRELIMINARY OFFICIAL STATEMENT CITY OF WICHITA, KANSAS $26,090,000* $103,055,000* WATER AND SEWER UTILITY REVENUE BONDS This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the

More information

$600,000,000 NEW JERSEY TURNPIKE AUTHORITY Turnpike Revenue Bonds, Series 2017 A

$600,000,000 NEW JERSEY TURNPIKE AUTHORITY Turnpike Revenue Bonds, Series 2017 A NEW ISSUE Book-Entry Only See RATINGS herein In the opinion of Wilentz, Goldman & Spitzer, P.A., Bond Counsel, under existing statutes, regulations, rulings and court decisions, and assuming continuing

More information